An investment’s “expected return” is a critical number, but in theory it is fairly simple: It is the total amount of money you can expect to gain or lose on an investment with a predictable rate of ...

Discover how Jensen's alpha measures a portfolio's excess returns compared to a benchmark index, using the capital asset ...

If you have a financial planner, or if you’re planning on investing without one, you should know about Modern Portfolio Theory, or MPT, first espoused by American economist Harry Markowitz. For his ...

What if I told you that one of the most dangerous numbers in the world of investing is 10%? Ask most amateur investors what return they expect from the market, and the answer is almost always the same ...

Both organizations and private individuals invest their resources in order to earn profits on their investments. Profitability can be measured using either income or the rate of return. Income is the ...

Understand what portfolio diversification is and why it's a crucial investment strategy. Learn how diversification can help ...

The cumulative abnormal return (CAR) is a key metric used by investors and financial analysts to evaluate the actual performance of a stock or portfolio relative to what is expected. CAR measures the ...