Alpha coefficient
Alpha is a risk-adjusted measure of the so-called active return on an investment. It is the return in excess of the compensation for the risk borne, and thus commonly used to assess active managers' performances. Often, the return of a benchmark is subtracted in order to consider relative performance, which yields Jensen's alpha.
The alpha coefficient (\alpha_i) is a parameter in the capital asset pricing model (CAPM). It is the intercept of the security characteristic line (SCL), that is, the coefficient of the constant in a market model regression.
\mathrm{SCL} : R_{i,t} - R_{f} = \alpha_i + \beta_i\,  ( R_{M,t} - R_{f} ) + \epsilon_{i,t} \frac{}{}
It can be shown that in an efficient market, the expected value of the alpha coefficient is zero. Therefore the alpha coefficient indicates how an investment has performed after accounting for the risk it involved:
- \alpha_i < 0: the investment has earned too little for its risk (or, was too risky for the return)
- \alpha_i = 0: the investment has earned a return adequate for the risk taken
- \alpha_i > 0: the investment has a return in excess of the reward for the assumed risk
For instance, although a return of 20% may appear good, the investment can still have a negative alpha if it's involved in an excessively risky position.

This is an excerpt from the article Alpha coefficient from the Wikipedia free encyclopedia. A list of authors is available at Wikipedia.
The article Alpha coefficient at en.wikipedia.org was accessed 54 times in the last 30 days. (as of: 08/09/2013)
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Cronbach's alpha - Wikipedia, the free encyclopedia
It was first named alpha by Lee Cronbach in 1951, as he had intended to continue with further coefficients. The measure can be viewed as an extension of the ...
en.wikipedia.org/wiki/Cronbach's_alpha
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What Is Coefficient Alpha? - Psychology Department - The University ...
spread lack of understanding of coefficient alpha and reliability theory in general. A discussion of the assumptions and meaning of coefficient alpha is presented.
psychweb.psy.umt.edu/denis/datadecision/front/cortina_alpha.pdf
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SPSS FAQ: What does Cronbach's alpha mean? - IDRE - UCLA
Technically speaking, Cronbach's alpha is not a statistical test - it is a coefficient of reliability (or consistency). Cronbach's alpha can be written as a function of ...
www.ats.ucla.edu/stat/spss/faq/alpha.html
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Coefficient Alpha: A Basic
This article is a pedagogical piece on coefficient alpha ((1) and its uses. The ... Coefficient alpha (at) is a commonly used index of test reliability. It can be.
mres.gmu.edu/readings/PSYC557/Miller_coefficient_alpha.pdf
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Coefficient alpha and the internal structure of tests - Department of ...
COEFFICIENT ALPHA AND THE INTERNAL. STRUCTURE OF TESTS*. LF~ J. CRONBACH. UNIVERSITY OF ILLINOIS. A general formula (a) of which a ...
psych.colorado.edu/~carey/courses/psyc5112/readings/alpha_cronbach.pdf
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Cronbach's Alpha: A Tool for Assessing the Reliability of Scales
The ALPHA option in PROC CORR provides an effective tool for measuring Cronbach's alpha, which is a numerical coefficient of reliability. Computation of ...
www.joe.org/joe/1999april/tt3.php
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Calculating, Interpreting, and Reporting Cronbach's Alpha Reliability ...
Adult, Continuing, and Community Education. Calculating, Interpreting, and Reporting. Cronbach's Alpha Reliability Coefficient for Likert-Type Scales. Joseph A.
scholarworks.iupui.edu/bitstream/handle/1805/344/Gliem+&+Gliem.pdf?sequence=1
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Starting at the Beginning: An Introduction to Coefficient Alpha and ...
STATISTICAL DEVELOPMENTS AND APPLICATIONS. Starting at the Beginning: An Introduction to Coefficient Alpha and Internal Consistency. David L. Streiner.
campus.murraystate.edu/academic/faculty/mark.wattier/streiner2003.pdf
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The CORR Procedure: Cronbach's Coefficient Alpha - SAS
Analyzing latent constructs such as job satisfaction, motor ability, sensory recognition, or customer satisfaction requires instruments to accurately measure the ...
support.sas.com/documentation/cdl/en/procstat/63104/HTML/default/procstat_corr_sect019.htm
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Coefficient Alpha and Related Internal Consistency ... - Mailer Fsu
1. Coefficient Alpha and Related. Internal Consistency Reliability. Coefficients. ( by H. G. Osburn). (Cited from Psychological Methods, 2000; 5,3). Presented by.
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Alpha coefficient in science
[PDF]My Current Thoughts on Coefficient Alpha and Successor ... - CRESST
My Current Thoughts on Coefficient Alpha and Successor Procedures. CSE Report 643. Lee J. Cronbach. Stanford University. Editorial Assistance by. Richard J.
[PDF]What Is Coefficient Alpha? - Psychology Department - The University ...
spread lack of understanding of coefficient alpha and reliability theory in general. A discussion of the assumptions and meaning of coefficient alpha is presented.
Statistical inference for coefficient alpha - Conservancy - University ...
Title: Statistical inference for coefficient alpha. Authors: Feldt, Leonard S. Woodruff, David J. Salih, Fathi A. Issue Date: 1987. Citation: Feldt, Leonard S, Woodruff, ...
[PDF]Coefficient Alpha: A Basic
Equation Modeling. Michael B. Miller. Washington University School of Medicine. This article is a pedagogical piece on coefficient alpha ((1) and its uses. The.
[PDF]Results on the Standard Error of the Coefficient Alpha Index of ...
Coefficient Alpha Index of Reliability. Adam Duhachek. Department of Marketing, Kelley School of Business, Indiana University, Bloomington, Indiana 47405, ...
[PDF]Calculating, Interpreting, and Reporting Cronbach's Alpha Reliability ...
Cronbach's Alpha Reliability Coefficient for Likert-Type Scales. Joseph A. Gliem .... with my graduate program at The Ohio State University.” Students were ...
[PDF]Some Notes on Coefficient Alpha - Faculty of Education
this paper is to discuss the robustness of coefficient alpha. ... Send any correspondence to: Dr. Bruno D. Zumbo, University of Northern British Columbia, Prince.
Hypothesis testing for coefficient alpha: An SEM approach | Alberto ...
Behavior Research Methods 2010, 42 (2), 618-625 doi:10.3758/BRM.42.2.618 Hypothesis testing for coefficient alpha: An SEM approach University of ...
[PDF]Uses and abuses of Coefficient Alpha.pdf
Uses and Abuses of Coefficient Alpha. Neal Schmitt. Michigan State University. The article addresses some concerns about how coefficient alpha is reported ...
Coefficient Alpha and Reliability of Scale Scores
Coefficient Alpha and Reliability of Scale Scores. Rashid S. Almehrizi1. 1Sultan Qaboos University, Oman. Rashid S. Almehrizi, Department of Psychology, ...
Books on the term Alpha coefficient
The Corsini Encyclopedia of Psychology
The Corsini Encyclopedia of Psychology
Irving B. Weiner, W. Edward Craighead, 2010
Scale reliability (commonly called internal consistency) is a measure of how well the items on a test relate to each other. The standard statistic for scale reliability is Cronbach's (1951) coefficient alpha (α). One way of understanding Cronbach's ...
JMP for Basic Univariate and Multivariate Statistics: Methods for ...
JMP for Basic Univariate and Multivariate Statistics: Methods for ...
Ann Lehman, Norm O'Rourke, Larry Hatcher, 2013
This user-friendly book introduces researchers and students of the social sciences to JMP and to elementary statistical procedures, while the more advanced statistical procedures that are presented make it an invaluable reference guide for ...
Base SAS 9. 3 Procedures Guide: Statistical Procedures, Second Edition
Base SAS 9. 3 Procedures Guide: Statistical Procedures, Second Edition
SAS Institute, 2012
Using the ALPHA option, the CORR procedure computes Cronbach's coefficient alpha in Output 2.6.3. The Cronbach's coefficient alpha is a lower bound for the reliability coefficient for the raw variables and the standardized variables. Positive  ...
Structural Validity of the Mood and Behavior Rating Scale for ...
Structural Validity of the Mood and Behavior Rating Scale for ...
Laura A. Nemcek, 2008
Further inspection of Table 1 reveals that an overall Alpha coefficient of .74 was obtained for the 7-item Depression Physical and Medical subscale. Moderately strong individual item Alpha coefficients were obtained within the range from .46 to ...
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Alpha coefficient
"Ordinal Coefficients Alpha and Theta" by Bruno D. Zumbo, Anne M. Gadermann et al.
Two new reliability indices, ordinal coefficient alpha and ordinal coefficient theta, are introduced. A simulation study was conducted in order to compare the new ordinal reliability estimates to each other and to coefficient alpha with Likert data. Results indicate that ordinal coefficients alpha and theta are consistently suitable estimates of the theoretical reliability, regardless of the magnitude of the theoretical reliability, the number of scale points, and the skewness of the scale point distributions. In contrast, coefficient alpha is in general a negatively biased estimate of reliability. The use of ordinal coefficients alpha and theta as alternatives to coefficient alpha when estimating the reliability based on Likert response items are recommended. The choice between the two ordinal coefficients depends on whether one is assuming a factor analysis model (ordinal coefficient alpha) or a principal components analysis model (ordinal coefficient theta).
digitalcommons.wayne.edu/jmasm/vol6/iss1/4/
Alpha Coefficient Definition | Private Equity Definition
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Coefficient Alpha and Reliability of Scale Scores | information for practice
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Research About The Coefficient Alpha Psychology Essay
The coefficient alpha measures internal consistency and depends on the correlation among the items on the test. The stronger the correlations ...
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Coefficient Alpha Bootstrap Confidence Interval Under Nonnormality
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Psychological Statistics: Cronbach to the future
psychologicalstatistics.blogspot.com/2013/08/cronbach-to-future.html
residuals - Computing a circular-linear partial correlation - Cross Validated
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Do you always measure reliability through the Cronbach's alpha coefficient? Or is there another way? (multiple linear regression) | Question and Answer
I started doing a quantitative research for my thesis without any previous SPSS or proper statistic experience, and the first thing my professor told
qandasys.info/do-you-always-measure-reliability-through-the-cronbachs-alpha-coefficient-or-is-there-another-way-multiple-linear-regression-2/
Development of Self-Management Scale for Kidney Transplant Recipients, Including Management of Post-Transplantation Chronic Kidney Disease
ISRN Transplantation is a peer-reviewed, open access journal that publishes original research articles, review articles, and clinical studies in all areas of transplantation.
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evaporation - Thermodynamics: Are pressure and temperature enough to calculate enthalpy? - Physics Stack Exchange
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