Fama and French Three Factor Model
The Fama and French Three Factor Model is a corollary of the Capital Asset Pricing Model (CAPM). It determines the required rate of return… Read Article
Risk & Return
Equity Risk Premium
What is Equity Risk Premium?Investing in equity is not risk-free. The risk is not only associated with returns, but the capital is also not… Read Article
Advantages and Disadvantages of CAPM
What is CAPM?As the name itself suggest, the Capital Asset Pricing Model (CAPM) is used for pricing the security with a given risk. This… Read Article
Risk Free Rate – What It Is And Why It’s Important?
The risk-free rate is the return on an investment that carries no risk or zero risk. It is the minimum return that an investor… Read Article
Systematic Risk – Meaning, Types And How To Measure It
Systematic risk occurs due to macroeconomic factors. It is also called market risk or non-diversifiable or volatility risk as it is beyond the control… 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
Benefits & Drawbacks of Portfolio Management
One of the biggest challenges faced by individuals & institutions is to decide how to invest for future needs. For individuals, the goal might… Read Article
Portfolio Revision
Portfolio Revision MeaningPortfolio revision is one of the pillars of the overall process of portfolio management. It entails assessing the change in portfolio composition… Read Article
Risk-Return Tradeoff
Risk-Return Tradeoff is the relationship between the risk of investing in a financial market instrument vis-à-vis the expected or potential return from the same.Risk-Return… Read Article
Portfolio Investment
Portfolio Investment is the science and art of building a combination of assets to achieve a required rate of return over a period of… 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