How to calculate Portfolio Risk? There you have ten years, three assets and let us think of those as annual returns. It does not matter whether these are Dollar returns or Euro returns, whether this is our total returns or just the capital gains. Just think of these are the annual returns of the assets and if you want… Read More »
How do we calculate Beta (ß)? What is Beta? Beta is not only a widely used measure of risk but also, it is the central magnitude in what we call the capital asset pricing model. That capital asset pricing model that we also call the CAPM is one way of thinking about the expected or required return of an asset,… Read More »
What is Risk or Volatility? In finance, risk and return go always together. You cannot really separate return from risk. These are like two sides of the same coin. You can only interpret properly a given amount of return only if you are thinking of the return that, of the risk that investors are exposed… Read More »
Arithmetic and Geometric Mean Returns There is more than one way of both assessing mean returns and assessing risk and we are going to look at two definitions on each side. Let’s go back to our data set. Year USA Spain Egypt World 2004 10.7% 29.6% 126.2% 15.8% 2005 5.7% 4.9% 161.6% 11.4% 2006 15.3% 50.2% 17.1%… Read More »
Calculate Return on Investment How we calculate periodic return? A periodic return is referred to as the return on any given period. In finance, we always look at multiple periods rather one period. At times, we may look for any specific purpose but when we want to assess the performance of assets, what we do is to aggregate… Read More »
Things to know about merchant cash advances Extra capital for business can be required on several occasions. In order to get money through loan from traditional sources like bank, you may have to invest a lot of time. Energy may be wasted as well. Even after applying for loan in the bank, you may not… Read More »
Straight Line Depreciation What is straight line depreciation? Straight line depreciation is considered as a method through which cost of the plant asset is matched with the period of accounting. Service time plays an important role on the occasion. It is generally counted for a year. Same percentage is considered for the entire duration in… Read More »
FOB Shipping Insurance Why should you buy FOB shipping insurance? The word FOB is an abbreviation for Freight on Board. It can be recognized with the term Free on Board also. Expenses till the boarding of the ship or airplane is borne by the seller. However, the remaining cost is given by the buyer. It… Read More »
Types of Risk In business, lots of risks are noticed. It can be aroused from the geography or the industry. Due to this reason, risk managers are now hired to control the situation in an effective manner. They have been considered as an expert in the field. The amount of risk is generally understood in… Read More »
Top Forex trading platform Many things to be looked for when choosing Forex trading platform and if you filter through the number of platforms available, you will find the ones that sit top of the lot. So before choosing a Forex trading platform, you have to do a serious research as there are so many… Read More »