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. The basics of CAPM ...

You don’t need a doctoral degree in finance to calculate your portfolio’s investment returns. A few principles are enough to turn even the most math-phobic people into shrewd investors. While basic ...

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 ...

Calculating returns from your stock portfolio can be a tricky matter, especially if some of your holdings pay dividends, or you make frequent deposits and withdrawals from your account. With Excel and ...

Calculate monthly returns by adjusting your portfolio's start/end balance with net deposits or withdrawals. Compare monthly returns to benchmarks like the Dow to assess your investment strategy. Avoid ...

Each month, I provide an update to my four dividend growth model portfolios that includes portfolio beta and other volatility-adjusted metrics, such as the Sharpe Ratio. Recently, I was asked by a few ...

Volatility is the bane of many investors. Bumpy moves in your portfolio in response to market fluctuations can cause you to make emotionally driven mistakes in your investing, and that can cause you ...

Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high ...

Every thriving business relies on a robust return on investment (ROI) to help gauge whether its investments are yielding a profit. Although you as an individual investor possess shallower pockets than ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

It’s easy to stick money in your retirement fund and forget about it. But that doesn’t mean you should! As important as consistent saving is understanding your rate of return on investment (ROI). If ...

Long-term investors know that it's important to keep perspective on the fluctuations of the financial markets. Nevertheless, looking at monthly returns on investment can give you important information ...