Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...
Every investor strives to balance two conflicting goals: Maximizing their investment returns and minimizing their risk. Beta offers a way to measure the amount of risk you’re taking on for a given ...
Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...
When it comes to picking stocks, everyone knows about alpha. Whether you were aware of it or not, we’re all looking for alpha, or outperformance, when trading or investing in stocks. Alpha is the ...
Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. When you invest, be prepared to ...
We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...
Calculating stock growth rates can be challenging and seem intimidating, especially with all the numbers and terminology getting thrown around. Every investor has a preferred way of calculating that ...