Remove Finance Remove Specific Risk Remove Systematic Risk
article thumbnail

What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

Investments are exposed to two types of risk: systematic and unsystematic. Systematic risks are uncontrollable market risks due to unavoidable external factors. Systematic risks include interest rates, economic fluctuations, political unrest, pandemics, etc.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

article thumbnail

Beta Explained: What It Is and How to Calculate It

Valutico

In the world of finance and investing, the concept of beta plays a vital role in assessing an investment’s risk and volatility. Beta, in finance, is a measure of a stock or portfolio’s sensitivity to market movements. It quantifies an asset’s risk relative to the market.

Beta 52