Risk Analysis Methods – Meaning and Types
Risk Analysis Methods: Understanding the TermIn a business, there are different types of threats and risks. There are different reasons and factors that give… Read Article
Capital Asset Pricing Model (CAPM)
Abnormal Return
What is Abnormal Return?An abnormal return is defined as ‘an unexpected, not-anticipated return on investments throughout a period of time. The reason can be… Read Article
Unsystematic Risk – Meaning, Types, Advantages, and More
What is Unsystematic Risk?Unsystematic risk is a risk that is inherent and specific to a company or industry. As we know, each and every… Read Article
Portfolio Management Theories
What do we mean by Portfolio Management Theories?A portfolio is a mix of a number of financial assets and investments. It may include stocks,… Read Article
Capital Market Line
What is Capital Market Line?Capital Market Line graphically represents all portfolios with an optimal combination of risk and return. They are the best-performing portfolios.… Read Article
SML vs CAL
There are a few very important concepts when it comes to security analysis, such as DCF, CAPM, as well as CML, SML, and CAL.… Read Article
SML vs CML – Meaning and Differences
SML and CML are two very crucial concepts in finance. SML stands for Security Market Line, while CML’s full form is Capital Market Line.… Read Article
Risk Adjusted Discount Rate – Meaning, Formula, Example and More
What is Risk-Adjusted Discount Rate?Risk-Adjusted Discount Rate (RADR) is sum total of two components. And these components are the risk-free rate and the risk… Read Article
Weak Form of Market Efficiency
What do we mean by Weak Form of Market Efficiency?The Efficient Market Hypothesis (EMH) Model has three versions – Strong, semi-strong, and weak. The… Read Article
Security Market Line
What do we mean by Security Market Line?The Capital Asset Pricing Model is graphically represented by drawing the Security Market Line. It shows the… Read Article
Efficient Market Hypothesis – All You Need To Know
The Efficient Market Hypothesis, or EMH, is a financial theory that says the asset (or security) prices reflect all the available information or data.… Read Article