## What is Diversification?

What is Diversification? Diversification The goal of diversification The ultimate goal of diversification is to maximize, to get the highest possible risk-adjusted returns. When I do diversify a portfolio, would I…

## Diversification and Correlation

Relationship between Diversification and Correlation Diversification At the heart of diversification is the correlation so we cannot really separate diversification from correlation. You cannot again think about the risk of a portfolio, without…

## Correlation Matrix

Correlation Matrix What is Correlation Matrix? A correlation matrix is simply a collection of correlations and some of those numbers may not be large enough for you to see all of…

## Portfolio Correlation coefficient

Correlation Coefficient You can never build a proper portfolio if you ignore the idea of correlation. Because whether and to which degree assets move in sync, or in completely different cycles, is…

## Portfolio Risk

How to calculate Portfolio Risk? There you have ten years, three assets and let us think of those as annual returns. It does not matter whether these are Dollar returns or Euro…

## How to calculate beta?

How do we calculate Beta (ß)? What is Beta? Beta is not only a widely used measure of risk but also, it is the central magnitude in what we call the…

## What is Risk or Volatility?

What is Risk or Volatility? In finance, risk and return go always together. You cannot really separate return from risk. These are like two sides of the same coin. You…

## Arithmetic and Geometric Mean Returns

Arithmetic and Geometric Mean Returns There is more than one way of both assessing mean returns and assessing risk and we are going to look at two definitions on each side. Let's…

## Calculate Periodic Returns on an Investment

Calculate Return on Investment How we calculate periodic return? A periodic return is referred to as the return on any given period. In finance, we always look at multiple periods rather…

## Capital Expenditure

What is Capital Expenditure (CAPEX) Following Key points will be discussed in this Article: What is Capital Expenditures? Capital Expenditure Formula Cash Flows to Capital Expenditures Can Capital Expenditure be Negative?…

## Merchant cash advances

Things to know about merchant cash advances Extra capital for business can be required on several occasions. In order to get money through loan from traditional sources like bank, you…

## Car Title Loans

Obtain Fast Cash With Car Title Loans Do you need fast money? Do you have a bad credit score? In case of poor credit history, you may come across difficulty…

## Home Equity Line of Credit

Knowing about Home Equity Line of Credit A line of credit loan is available in a variety of different ways. You may be able to qualify for a line of…

## Straight Line Depreciation

Straight Line Depreciation What is straight line depreciation? Straight line depreciation is considered as a method through which cost of the plant asset is matched with the period of accounting.…

## Uncollateralized loan

How uncollateralized loan works? If you have an excellent credit rating then you may able to get a loan without any collateral. It is a kind of lending that is popularly…