Value at Risk (VAR) – All You Need To Know
Value at risk (also VAR or VaR) is the statistical measure of risk. It quantifies the value of risk to give a maximum possible… Read Article
Methods of Risk Measurement
Correlation vs Covariance – All You Need To Know
Correlation and Covariance are popular terms used in Maths, specifically Statistics. Both the concepts help in establishing a relationship between two different factors. Due… Read Article
Scenario Analysis
Understanding Scenario AnalysisScenario Analysis is the process of calculating the value of a specific investment, or a certain group of investments, under a variety… Read Article
Advantages and Disadvantages of Sensitivity Analysis
Meaning of Sensitivity AnalysisSensitivity analysis is a management tool that helps in determining how different values of an independent variable can affect a particular… Read Article
Unlevered Beta
Unlevered Beta DefinitionIt is a risk measurement metric that compares the risk of a company without any debt to the risk of the market.… Read Article
Beta
Beta DefinitionBeta is a measure of volatility or risk of an investment in relation to the market. Also known as the beta coefficient (β),… Read Article
Sensitivity Analysis
What is Sensitivity Analysis?Sensitivity analysis is an investigation that is driven by data. It determines how the independent variable of a business can have… Read Article
Sharpe Ratio
What is Sharpe Ratio?Sharpe Ratio is a measurement of the risk-adjusted return of a portfolio. The concept is named after William F. Sharpe of… Read Article