How Long It Takes Your Credit Score to Recover from a Drastic Drop. Managing your finances isn’t simple. Typically life gets within the means, and you'll end up missing a payment, paying off a collections account or maybe considering filing for bankruptcy. You most likely apprehend your credit health are affected as a result. Need a process that your insurance carrier won't … [Read more...] about How Long It Takes Your Credit Score to Recover from a Drastic Drop
Corporate Finance
The Necessity of Property Valuation Prior to Making Financial Investments
Necessity of Property Valuation Prior to Making Financial Investments. The scope for investors in the field of real-estate is quite broad. Most investors can get suitable properties in different parts of the world provided the budget is fitting and the individual investor is aware of the procedure governing property buying. Image Courtesy to Pixabay The Necessity of … [Read more...] about The Necessity of Property Valuation Prior to Making Financial Investments
How CAPM relates with the Risk and Return
How CAPM relates to the risk and return. The standard deviation of an individual stock does not indicate how that stock will contribute to the risk and return of a diversified portfolio. Thus, another measure of risk is needed; a measure of a security's systematic risk. This measure is provided by the Capital Asset Pricing Model (CAPM). The Capital Asset Pricing Model (CAPM) … [Read more...] about How CAPM relates with the Risk and Return
Measuring Expected Returns
Measuring Expected Returns Measuring Expected Returns. Returns from security consist of income in the form of dividend or interest plus change in capital. Total returns consist of all price changes and income received during a specific interval. Future returns are the meaningful ones for decision made today. An important use of expected return is to compare value across asset … [Read more...] about Measuring Expected Returns
Beta and its Characteristics
Beta and its Characteristics. [ Beta ] - In finance, the beta (β or beta coefficient) of an investment indicates whether the investment is more or less volatile than the market. In general, a beta less than 1 indicates that the investment is less volatile than the market, while a beta of more than 1 indicates that the investment is more volatile than the market. Volatility is … [Read more...] about Beta and its Characteristics
Difference between Systematic and Unsystematic Risk
Difference Between Systematic and Unsystematic Risk. Before identifying the differences between systematic risk and unsystematic, we should have a clear understanding of these mentioned terminologies. However, they are defined as below: Difference Between Systematic and Unsystematic Risk Systematic risk Non-diversifiable risk is called systematic risk. It is the portion of … [Read more...] about Difference between Systematic and Unsystematic Risk
Systematic Risk and Unsystematic Risk – Meaning and Components
Systematic Risk and Unsystematic Risk. All investors must know the difference between systematic and unsystematic risk because it will help them to take effective investment decision making. In a broader sense, all types of risk can be categorized into two types; one is a systematic risk which is the non-diversifiable risk and the other is an unsystematic risk or non-systematic … [Read more...] about Systematic Risk and Unsystematic Risk – Meaning and Components
Valuation Concepts – 5 Most Important Valuation Concepts
Valuation Concepts: Valuation is based on economic factors, industry variables, and an analysis of the financial statements and the out look for the individual firm. The purpose of a valuation is to determine the long-run fundamental economic value of a specific company’s common stock. When a firm is considering the purchase of marketable securities- debt, preferred stock or … [Read more...] about Valuation Concepts – 5 Most Important Valuation Concepts
Characteristics of Risk
Characteristics of Risk. The characteristics of risk can be summarized as below: Risk measures the changes in the product price. The more debt in the business, the riskier the investment. The larger the margin of safety, the lower the risk. The more variable the return, the riskier the investment. Characteristics of Risk Return Investment implies … [Read more...] about Characteristics of Risk
Problems of Valuation
Problems of Valuation. When a business is transferred or its assets are sold, it is necessary for the parties involved in the transaction to agree upon the price to be paid. The decision on the price to be paid is often difficult to arrive at. The balance sheet surplus of assets over liabilities is the generally accepted guide to the price to be paid for the business as a … [Read more...] about Problems of Valuation