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
Risk & Return
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
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
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
Business Risk vs Financial Risk – All You Need to Know
Risks are everywhere, especially in a business. A company has to deal with many risks, and two of the most important risks are business… Read Article
Systemic Risk vs Systematic Risk – All You Need to Know
Systemic and Systematic risk both represent the risk that exists in the financial markets. However, both terms refer to a different type of risk.… 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
4 Most Important Factors Influencing Investor Preference
When we talk about finance and the finance world, there are two important concepts: investment and investor. However, both concepts are interdependent and interlinked… 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