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
Risk & Return
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
Business Risk – Meaning, Causes, How to Reduce and More
Business risk is anything that hampers a company from achieving its objectives, such as generating profits. These risks could even threaten the company’s sustainability… 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
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
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
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
Mutual Fund vs Hedge Fund – All You Need To Know
Hedge funds and mutual funds are often misunderstood to be the same as both require pooling of funds from the investors. Fund managers manage… Read Article
Financial Risk – Meaning, Types, Management And More
Financial risk is an inherent part of the investment and applies to businesses, government, individuals, and even financial markets. It basically represents the chance… Read Article
Natural Hedging – Benefits, Disadvantages And More
Natural Hedging is the balancing act by adding assets that have a negative correlation. A company can also go for a natural hedge by… Read Article