Alpha and beta are key personal finance indicators used to assess investment returns and market risk. Alpha measures a stock or mutual fund's performance relative to a benchmark, indicating outperformance (positive alpha) or underperformance (negative alpha) compared to its expected return based on risk. Beta quantifies the volatility or risk of an investment in comparison to the broader market, helping investors understand if the risk is higher or lower than the benchmark. Both are crucial for evaluating an investment's complete risk-return profile.