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 ...

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 ...

You don’t need a doctoral degree in finance to calculate your portfolio’s investment returns. A few principles are enough to turn even the most math-phobic people into shrewd investors. While basic ...

Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Andy Smith is a Certified Financial Planner (CFP®), licensed ...

None of us has a crystal ball that allows us to accurately project the price of a stock in the future. However, if we make a few basic assumptions, it is possible to determine the price a stock should ...

Calculate monthly returns by adjusting your portfolio's start/end balance with net deposits or withdrawals. Compare monthly returns to benchmarks like the Dow to assess your investment strategy. Avoid ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...