I know that the stock market isn't zero sum but I was wondering if alpha is. If I beat the market by $200 in returns doesn't that mean that someone lagged the market by $200 in returns?
Suppose the market is simplified into $1000 which returns 10% overall. At the end of the year, the market is at $1100 total. If I turned my $300 into $400 that means that the other $700 initially didn't have any gains and had negative alpha.
Is alpha zero sum in terms of dollars (I know its not in terms of %). Thanks.