Beta

Beta Coefficient in Finance

Beta DefinitionBeta is a measure of volatility or risk of a stock in relation to market risk. Also known as the beta coefficient (β),… Read Article
Systematic vs Unsystematic Risk

Systematic Vs Unsystematic Risks

Definition of Systematic RiskSystematic risk is also referred to as non-diversifiable risk or market risk. Systematic risk is the fluctuations in the returns on… Read Article
Sensitivity Analysis

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
Market Risk Premium

Market Risk Premium

Meaning of Market Risk PremiumThe additional return an investor receives for holding a risky market portfolio instead of risk-free assets is termed as a… Read Article
Sharpe Ratio

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
Credit Risk

Credit Risk

Credit risk is the risk of non-payment of a loan by the borrower. It is a type of Financial Risk. In other words, we… Read Article
Arbitrage Pricing Theory

Arbitrage Pricing Theory

Arbitrage Pricing Theory (APT) is an alternate version of the Capital Asset Pricing Model (CAPM). This theory, like CAPM, provides investors with an estimated… Read Article
Investment Objectives and Constraints

Investment Objectives and Constraints

Investment objectives and constraints are the cornerstones of any investment policy statement. A financial advisor/portfolio manager needs to formally document these before commencing the… Read Article
portfolio management

Portfolio Management

Portfolio management is the key skill that one requires for managing investment effectively. Irrespective of whether they are an individual or HNI (High Net Worth… Read Article