One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns. The basics of CAPM ...

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how ...

A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because ...

Many investors focus their attention on how a stock's price changes over time. However, when you're talking about dividend-paying stocks, that doesn't even begin to tell the entire story. For example, ...

Master calculating cost of equity in Excel using CAPM. Discover step-by-step guidance on market return, risk-free rate, and ...

Many people make the mistake of investing in a stock simply with the hope or belief that it will or might go up in value. However, there is a very popular mantra that states "Hope is not a strategy." ...

Total return includes both capital gains and dividends, providing a comprehensive view of stock performance. Expressing total return as a percentage or dollar value helps compare various investments ...

Whenever you make investments, you typically place the money in any of a range of different assets and earn returns for different periods of time. For instance, you might invest in shares of stock and ...