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

Discover how to evaluate risk in investments using Sharpe, Treynor ratios, alpha, and beta for better portfolio performance compared to risk-free benchmarks.

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is generating ...

Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...

The risk-free rate of return is one of the most basic components of modern finance. The risk-free asset only applies in theory, but its actual safety rarely comes into question until events fall far ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

About 4 months ago, I argued it was among the worst times to invest in non-investment grade debts, like those held in PIMCO Dynamic Income Fund in 3 decades. Now, I see an improved return/risk profile ...