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 compensate them for the risk of owning an asset. Because ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. What if I say that starting a business is unnatural? The venture is always risky, and we’re ...

Investing is about putting money at risk in order to earn a return. In theory, the more risk an investor is willing to accept, the more returns he or she should expect to earn to compensate for the ...

None of us has a crystal ball that allows us to accurately project the price of a stock in the future. However, if we make a few basic assumptions, it is possible to determine the price a stock should ...

How do you know if an investment is worthwhile? How can you be sure your investment decisions will amount to the ROI you need to retire? These are important questions every investor needs to ask ...

Kristina Zucchi is an investment analyst and financial writer with 15+ years of experience managing portfolios and conducting equity research. Cierra Murry is an expert in banking, credit cards, ...

When it comes to managing a portfolio with hundreds of millions or billions of dollars, it’s important to have a firm handle on risk. Specifically, fund managers need to calculate the Value at Risk ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J Catalano is a CFP and Registered ...

The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...

A discounted cash flow, or DCF, analysis measures the value of a business or project, such as a new factory for your small business. This value equals the sum of all of the project's future annual ...