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 ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

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 ...

The return on a capital investment measures the percentage return on the money that someone has put into an investment, such as a small business. Small business owners looking for outside investment ...

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 ...

When investing, especially in stocks, your returns can fluctuate wildly from year to year. For this reason, knowing an asset's return for a single year isn't too helpful when deciding whether or not ...

A Treasury bill, or T-bill, is a short-term government debt security with a maturity of less than one year. Unlike many other debt securities that make regular interest payments to investors, Treasury ...