A stock's alpha measures the stock's ________.

A) expected return
B) abnormal return
C) excess return
D) residual return

Stock's Alpha

Stock's Alpha measures a stock's performance relative to a benchmark index, indicating its value added or lost against the market average.

Abnormal Return

The difference between the actual return of a security and the expected return, typically due to unexpected events.

Residual Return

The return on an investment beyond what is predicted by market movements or models, often associated with active management performance.