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 returns, whether this is our total returns or just the capital gains. Just think of these are the annual returns of the assets and if you want… Read More »
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 capital asset pricing model. That capital asset pricing model that we also call the CAPM is one way of thinking about the expected or required return of an asset,… Read More »
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 can only interpret properly a given amount of return only if you are thinking of the return that, of the risk that investors are exposed… Read More »
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 go back to our data set. Year USA Spain Egypt World 2004 10.7% 29.6% 126.2% 15.8% 2005 5.7% 4.9% 161.6% 11.4% 2006 15.3% 50.2% 17.1%… Read More »
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 one period. At times, we may look for any specific purpose but when we want to assess the performance of assets, what we do is to aggregate… Read More »
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? Capital Expenditures Budget Definition of Capital Expenditure Capital Expenditure, or CapEx, are assets utilized by an organization to gain or redesign physical resources, for example,… Read More »
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 may have to invest a lot of time. Energy may be wasted as well. Even after applying for loan in the bank, you may not… Read More »
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 to acquire short-term loans. By using car title loans, issues can be solved. It is possible to get quick cash without any issue. Income verification… Read More »
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 credit home loan depending on your financial situation, and credit history. Home equity line of credit loan is the most common and the popular loan,… Read More »
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. Service time plays an important role on the occasion. It is generally counted for a year. Same percentage is considered for the entire duration in… Read More »