To better understand an ETF’s exposure, pick a well-known cap-weighted index in the same category as a benchmark and compare the ETF’s exposures with that index in terms of holdings, size, sector, country and factor tilts. Even if you are looking for a non-market cap-weighted strategy...
How to calculate the amount of liability insurance you need Everyone has different insurance needs, but some general guidelines can help you determine how much coverage you may need. Understand your state’s insurance laws The minimum coverage needed to put your car on the road depends on your...
Produce a risk evaluation template for health and safety. Open a word document and save it as “risk evaluation.” Insert a table into the document. The number of columns depends on what criteria you need to evaluate. For example, it could include highlighting hazards, why they are hazards,...
Afee-based financial advisoror robo advisor platform typically charges for their advice based on a percentage of the assets they manage for you. However, as the financial industry evolves to address the diverse needs of clients, many advisors are also offering flat, project-based or hourly fees....
Step 4: Calculate Weighted Returns Multiply each investment's return by its portfolio weight. Add all these weighted returns together. Example: If a stock returned 54% and represents 20% of your portfolio, its weighted return is 10.8%
You'll first need to calculate thesinking fundfactor (SFF), which is essentially the amount you need to set aside regularly to repay your loan. The math can look complicated (there are various calculators online and in spreadsheets to do the work for you), but it's nothing more than comp...
The Debt to Equity ratio (also called the “debt-equity ratio”, “risk ratio”, or “gearing”), is aleverage ratiothat calculates the weight of total debt and financial liabilities against totalshareholders’ equity. Unlike the debt-assets ratio which uses total assets as a denominator, the...
A solid safe bank should have a CET1 to risk-weighted assets (RWA) ratio of 15%, to ensure that its solvency is not jeopardized in case of asset devaluation or losses. If a Bank has low levels of liquidity, at least should be well-capitalized and solvent. Banco Popular reached 8.19% ...
Capital employed is the total amount of capital a company uses to generate profit, which can be simplified as total assets minus current liabilities. A higher ROCE indicates a more efficient use of capital to generate shareholder value, and it should be higher than the company’s capital cost....
Learn how to calculate the weighted average cost of capital (WACC), which is how much interest a company owes for each dollar it finances.