Investment Decisions

This Category is dedicated to articles related to Investment Decisions.


Market Risk Premium

Meaning Of Market Risk Premium The additional return an investor receives for holding a risky market portfolio instead of risk-free assets is termed as a market risk premium. Analysts …

Sharpe Ratio

What is Sharpe Ratio? Sharpe Ratio is a measurement of risk-adjusted return of a portfolio. The concept is named after William F. Sharpe of Stanford University. The ratio measures …

Arbitrage Pricing Theory

Arbitrage Pricing Theory (APT) is an alternate version of Capital Asset Pricing Model (CAPM). This theory, like CAPM provides investors with estimated required rate of return on risky securities. …