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.

If your expected return on the individual investments in your portfolio is known or can be anticipated, you can calculate the portfolio's overall rate of return using Microsoft Excel.

What is the internal rate of return (IRR)? This article explains the concept of IRR, how to calculate it, why it’s used and its importance.

The internal rate of return, sometimes called the "yield criterion" or the "dollar-weighted rate of return," is a measure widely used to gauge whether an investment is worth pursuing, or in ...

To calculate expected rate of return, you multiply the expected rate of return for each asset by that asset’s weight as part of the portfolio. You then add each of those results together.

Second, we need to calculate the amount of share repurchases. Estimating Expected Growth Rate Part 2: Share Repurchases The image below shows relevant numbers for Coca-Cola from 2006 through 2015.

Excel offers three functions for calculating the internal rate of return, and I recommend you use all three.

The answer is, it depends. It depends on what type of return you require. Let's use the above formula to calculate the value of this contract for various discount rates.

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 ...

Discover what the risk-free rate of return is, how it influences investments, and if a truly risk-free return exists. Explore ...

Present value discounts future cash flow to present-day dollars. The discount rate can be an alternative investment that you'll miss by spending money on your business, or you might use the rate ...

The interest rate your lender gives you isn't the true cost of your mortgage. Learn how to calculate your effective interest rate, including any discount points.