Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

Learn how Value at Risk (VaR) predicts possible investment losses and explore three key methods for calculating VaR: ...

Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, ...

Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

Opinions expressed by Entrepreneur contributors are their own. The process of business risk calculation is identifying potential threats to your business and then analyzing those probabilities to make ...

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how ...

All investments have some level of risk, and bonds are no exception. Some bonds have virtually no chance of default, such as U.S. Treasuries, while others have a significant default risk. Companies ...

Investors demand higher returns from illiquid assets due to greater selling difficulty. Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free ...

Beta is the 2nd letter in the Greek alphabet, and the financial world uses it to refer to the sensitivity of an asset’s price compared to a specific index or benchmark. Beta is also used as a measure ...

Policy-making bodies increasingly agree that the most efficient and effective clinical CHD prevention requires a global assessment of CHD risk. [5,13] Fortunately, a variety of user-friendly tools ...

When an investor is analyzing and comparing options, opportunity cost reflects the potential benefits that the investor gives up by electing against some of the options. Read on to learn about the ...

You’re sitting across from an angel investor, heart racing, as they ask the question you knew was coming: “So… what’s your startup valuation?” You freeze. Because you’ve already googled this twelve ...