## 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

## Standalone Risk

Standalone Risk: MeaningWe can define “standalone risk” as the risk that an investor faces when he holds only one single asset as an investment.… Read Article

## Decision Tree Analysis – Meaning, Example, Steps, and More

A Decision Tree is a graphical chart and tool to help people make better decisions. It is a risk analysis method. Basically, it is… Read Article

## Can Covariance be Negative?

Covariance is a statistical tool for measuring the relationship between two random variables. It essentially indicates the direction between the two variables. It is… 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

## Opposite of Risk Aversion

What is the Opposite of Risk Aversion?Risk aversion is an approach to making investments in safe and stable financial instruments, even though if they… Read Article

## Multiple Discriminant Analysis

To better understand Multiple Discriminant Analysis, let’s first understand Discriminant Analysis. So, Discriminant Analysis is a regression technique that we use in statistics to… Read Article

## Treynor Ratio – Meaning, Formula, Importance and More

What is a Treynor Ratio?The Treynor Ratio concept was developed by Jack Treynor, an American economist who was known as a scholar of Investment… Read Article

## Expected Return

Meaning of Expected returnThe expected return of an investment is the expected return an investor will get from an investment or a portfolio of… Read Article

## Coefficient of Variation

Meaning of the Coefficient of VariationCoefficient of Variation (CV) is a statistical measure that helps to measure the relative variability of a given data… Read Article

## Certainty Equivalent – Meaning, Importance and More

Certainty Equivalent is the return or cash that an investor will accept today than the higher but uncertain return in the future. Or, we… Read Article