The capital asset pricing model (CAPM) approximates return as a linear function of beta. Beta is a measurement of how much an investment fluctuates in sync with the markets. For a stable bond, beta ...
If your financial plan demands you earn more than the 3% or 4%—and it should—now's the time to get comfortable with risk and how to manage it. You probably face risk-reward trade-offs regularly. When ...
Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how much you could gain. Calculating this ratio may help you decide whether a ...