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
In investing, risk and return are highly correlated. Increased potential returns on investment usually go hand-in-hand with increased risk.| Corporate Finance Institute
Portfolio managers manage investment portfolios using a six-step portfolio management process. Learn exactly what does a portfolio manager do in this guide.| Corporate Finance Institute
Capital gains yield (CGY) is the price appreciation on an investment or a security expressed as a percentage. See calculation and example here.| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
There are different types of bond issuers. These bond issuers create bonds to borrow funds from bondholders, to be repaid at maturity.| Corporate Finance Institute
Unlevered Beta (Asset Beta) is the volatility of returns for a business, without considering its financial leverage. It only takes into account its assets.| 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
Equity risk premium is the difference between returns on equity/individual stock and the risk-free rate of return.| Corporate Finance Institute
Regression analysis is a set of statistical methods used to estimate relationships between a dependent variable and one or more independent variables.| Corporate Finance Institute
A DCF model is a specific type of financial model used to value a business. The model is simply a forecast of a company’s unlevered free cash flow| Corporate Finance Institute