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
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
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
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
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 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 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
The cost of equity is estimated using Sharpe’s Model of Capital Asset Pricing Model. The model finds the cost of capital by establishing a… Read Article
Investment Analysis is simply the process of evaluating an investment in each attribute of investments. Evaluation of investment involves evaluating the attributes of investments.… Read Article