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 ...

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 ...

Learn the step-by-step process to calculate the equity risk premium. Understand stock and bond return expectations and make ...

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 ...

Learn to calculate the Sharpe Ratio in Excel for insightful investment analysis. Our guide will help you assess risk versus ...

In order to make an educated decision when making any investment, you need to try to determine how much you could make on that investment. It’s also important to know how much you’ve made on the ...

Stock's historical variance measures its return stability over time. Higher variance indicates greater return unpredictability and risk. Calculate variance using Excel to simplify the process for ...