While financial metrics are at the forefront when it comes to ROI, it's equally important to consider the broader impact of risk management. Non-financial benefits include improved reputation, increased customer trust, enhanced employee morale, and decreased operational disruptions. A holistic eva...
You’re looking in the rearview mirror:Beta is a backward-looking, singular measure that doesn’t incorporate any other information. Sure, it’s good to reflect on what the past three years looked like, but as an investor, what you care about is what’s in store for the next three year...
Risk: How to Measure ItExplains three methods to evaluate risk in an investment. Using beta to monitor the volatility of stocks and stock funds; How standard deviation measures volatility regardless of what drives it; How to calculate the downside risk o...
Think of it like using an expense tracker — you need to make sure you’re not spending more than you’re earning. This article answers the question, “How to measure return on investment?” It also shares practical strategies for improving ROI so you can get the most out of your ...
Learn how to accurately measure credit risk and make informed financial decisions with our comprehensive guide on credit risk measurement in finance.
Alphais another measure of risk in addition to beta that measures returns after adjusting for overall market volatility and random fluctuation. An alpha calculation of zero suggests that a stock has earned a return equal to the risk. An alpha above zero means an investment outperformed. A negativ...
What will happen to interest rates and all that they affect if government debt growth isn’t slowed? 如果政府债务增长不放缓,利率及其影响会发生什么变化? Can a big, important country that has a major reserve currency like the US go broke—and, if so, what would that look like? 像美国这样...
Using Risk Adjusted Returns Investors can measure the performance of their portfolio by comparing their risk adjusted return to the return for the benchmark for their fund or investment. Having investments with lower risk in a strong market can limit returns. On the other hand, having higher risk...
Individuals, financial advisors, and companies can all developrisk managementstrategies to help manage risks associated with their investments and business activities. Academically, there are several theories, metrics, and strategies that have been identified to measure, analyze, and manage risks. Some of...
Individuals, financial advisors, and companies can all developrisk managementstrategies to help manage risks associated with their investments and business activities. Academically, there are several theories, metrics, and strategies that have been identified to measure, analyze, and manage risks. Some of...