Question on alpha and beta
Recent college graduate and new here to WSO, very excited to learn more about Finance. I have recently started creating an investing sort of tool in excel and I have a question regarding alpha and beta.
As I understand (correct me if I'm wrong), it is a widely debated topic, whether it is better practice, to maximize alpha or to minimize beta. Alpha equals the return of a stock over what it's risk warrants (as depicted by CAPM for example).
Putting this together I realized, by choosing to minimize beta, you are inadvertently maximizing alpha, since alpha is a function of beta (indirectly). Am I right in this theory and if so, should we direct our attention primarily towards stocks' betas?