I am using the term loosely. Alpha and Beta come from the CAPM, where they have a very specific meaning. Perhaps I should have said “risk premium” instead of “beta”. That’s closer to what I mean. And by “alpha” I mean what’s left after subtracting out the risk premium and luck: the skill of the trader.
Also, are you sure your definition of beta matches Wikipedia’s? I’m not seeing how they can be the same thing
I am using the term loosely. Alpha and Beta come from the CAPM, where they have a very specific meaning. Perhaps I should have said “risk premium” instead of “beta”. That’s closer to what I mean. And by “alpha” I mean what’s left after subtracting out the risk premium and luck: the skill of the trader.