What is Alpha and Beta in stock market to pick the stock ?
many of my friend who is new in this line to invest they they wonder which stock we should pick and from long term and how much risk will it take.
so alpha is something called the stability of stock
and beta shows the volatility of the stock for better understanding take a example if beta is 1.2 and alpha is 1 it means the stock is 10x more volatility then market and in other cases if the alpha is 1.2 and beta is 0.1 it means the stock is less volatility then market and the return is greater them market.
how to apply just go to screener and apply filter of Alpha and beta and you good to go.
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