Investment Decisions

This Category is dedicated to articles related to Investment Decisions.


Unlevered Beta

UNLEVERED BETA DEFINITION Unlevered beta is a risk measurement metric that compares the risk of a company without any debt to the risk of the market. In simple language, …

Beta

BETA DEFINITION Beta is a measure of volatility or risk of an investment in relation to the market. Also known as the beta coefficient (β), it is used in …

Sensitivity Analysis

What is Sensitivity Analysis? Sensitivity analysis is an investigation that is driven by data. It determines how independent variable of a business can have an impact on the dependent …

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. …