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.

Knowing how to calculate your portfolio's returns is essential to becoming a savvier investor. Learn the basic principles ...

How to Calculate a Company's Risk Premium. A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to ...

Understand how risk-adjusted return is calculated and how it could help investors manage market volatility and improve long-term performance.

Two metrics to quantify how the market is valuing risks and rewards are liquidity premiums and the real risk-free rate. In this post, we'll break down each.

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 ...

The longer the bond term, the higher the risk -- so investors deserve a little extra. Here's how to calculate that.

How do you calculate the return on your CD? To calculate the return on your CD, you need a few key elements: the principal deposit, the interest rate, the compounding frequency and the term length.

How to Calculate RRR RRR is set by considering the risk-free rate, which is typically represented by government bond yields, and adding a risk premium that assesses the extra return expected of an ...

The easiest way to calculate the liquidity risk premium for an investment is to compare two similar investment options, one being liquid and the other being illiquid.