The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and| Corporate Finance Institute
Cost of Equity is the rate of return a shareholder requires for investing in a business. The rate of return required is based on the level of risk associated with the investment| Corporate Finance Institute
Net interest income is defined as the the difference between interest revenues and interest expenses.For financial institutions, interest revenues represent| Corporate Finance Institute
Capital structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. A firm's capital structure| Corporate Finance Institute
Risk management helps organizations minimize risk while identifying unique opportunities. Prepare for the future of finance with CFI's risk management courses.| Corporate Finance Institute
In investing, risk and return are highly correlated. Increased potential returns on investment usually go hand-in-hand with increased risk.| Corporate Finance Institute
The cost of debt is the return that a company provides to its debtholders and creditors. Cost of debt is used in WACC calculations for valuation analysis.| Corporate Finance Institute
The 10-year US Treasury Note is a debt obligation that is issued by the US Treasury Department and comes with a maturity of 10 years.| Corporate Finance Institute
The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.| Corporate Finance Institute
Explore CFI's valuation courses to find expert insights and learn about different methods and tools to make informed financial decisions and drive growth.| Corporate Finance Institute
Tim is a CFI author and instructor with diverse experience in capital markets, investment banking, investment management, and corporate development.| Corporate Finance Institute
WACC is a firm’s Weighted Average Cost of Capital and represents its blended cost of capital including equity and debt.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute