The meaning is not very different in the world of investing.

Most people who invest in stocks do so because they want a

return--this is the purpose of investing.

Alpha is the term given to the extra return.

Alpha measures the risk-adjusted return for a given asset.

Knowing the value of an asset that is driven by market

forces means nothing without gauging the risk associated

with owning the asset over a given time period. The best

investment is a stock or asset with a high return and

limited risk.