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Investment Analysis Tutorials
Beta - Learn how to choose stocks based on a measurement of volatility risk called beta. This tutorial begins by defining the term and then providing examples to illustrate various stock volatilities and their betas. You will learn about the relationship between beta and risk aversion, and also about beta books, which are publications that present betas periodically to investors.
Introduction to Risk-Return Relationship - Learn how to choose investments that fit your risk tolerance. This is an introduction to the relationship between investment risk and return. It is designed to help you understand risk and evaluate it. The tutorial explains some commonly used strategies that reduce risk while maintaining healthy returns.
The Capital Asset Pricing Model - Measuring the expected return of an asset is the goal of the Capital Asset Pricing Model, or CAPM. That is the subject of this tutorial. It will help you to identify the parts of the CAPM and to use it to calculate expected return.
The tutorial moves from defining CAPM to analyzing its parts to using it to calculate an example.
The Risk Premium and the Risk-Free Rate - The relationship between risk and return is fundamental to investing. Learn the details of this relationship by reading this tutorial. After defining types of risk, the articles discuss risk premium and the risk-free rate. The material here is meant to help you evaluate the risk levels of investments so that you can choose them according to your own risk tolerance.
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