1. CAPM vs. Arbitrage Pricing Theory: How They Differ

    Both project the expected rate of return given the level of risk assumed, but they ...
  2. VCIT: Vanguard Intermediate-Term Corp Bd ETF

    Learn about the Vanguard Intermediate-Term Corporate Bond ETF, and explore detailed ...
  3. XLE: Energy Select Sector SPDR ETF

    Find out more about the Energy Select Sector SPDR Fund, the top holdings of this ...
  4. How To Calculate Beta Of A Private Company

    We explain two methods for calculating the beta of a private company.
  5. The Capital Asset Pricing (CAPM) Model: Pros ...

    CAPM, while criticized for its unrealistic assumptions, provides a more useful outcome ...
  6. Taking Shots At CAPM

    Find out why many investors think the capital asset pricing model is full of holes. ...
  1. VCIT: Vanguard Intermediate-Term Corp Bd ETF

    Learn about the Vanguard Intermediate-Term Corporate Bond ETF, and explore detailed ...
  2. XLE: Energy Select Sector SPDR ETF

    Find out more about the Energy Select Sector SPDR Fund, the top holdings of this ...
  3. How To Calculate Beta Of A Private Company

    We explain two methods for calculating the beta of a private company.
  1. How is the expected market return determined when calculating market risk premium?

    Find out how the expected market return rate is determined when calculating market risk premium and how these figures are ...
  2. How accurate is the equity risk premium in evaluating a stock?

    Learn about the drawbacks of using the equity risk premium to evaluate a stock, and understand how it is calculated using ...
  3. How does unlevered beta help in risk management?

    Find out how unlevered beta can be used in risk identification and management, specifically as it relates to the CAPM valuation ...
  4. Why do some investors believe that unsystematic risk is not relevant?

    Read about a stock market theory that suggests that unsystematic risks are rendered irrelevant through widespread portfolio ...
Hot Definitions
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    Foreign exchange reserves are reserve assets held by a central bank in foreign currencies, used to back liabilities on their ...
  2. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated tariffs to encourage economic activity ...
  3. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  4. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  5. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  6. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
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