Beta & Relative Risk

We can add the risk-free rate and the equity risk premium to determine how much the market, or an average risk stock, will return. But what if our stock is more or less risky than …

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The Equity Risk Premium

The Equity Risk Premium is the premium investors charge for investing in the average risk equity over and above a risk-free investment. The ERP is a dynamic number that varies over time due to changes in …

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The Risk-Free Rate

The risk-free rate is a foundational element of investing. It’s the theoretical rate of return you can get investing in something that is guaranteed and has no risk. It’s a reference point in investing as …

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Python for Finance: An Easy Introduction

If you’re interested in finance and don’t mind programming, learning this trio will open you up to a whole new world, including but not limited to, automated trading, backtest analysis, factor investing, portfolio optimization, and …

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Micron: Consolidation and Cash Flows

There’s a lot that goes into valuing a company. I’ve valued fast-growing companies in my previous articles. Astute readers may have noticed I discounted the company’s cash flows, but I didn’t explain the method behind …

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