Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Khadija Khartit is a strategy, investment, and funding expert ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

An investment’s “expected return” is a critical number, but in theory it is fairly simple: It is the total amount of money you can expect to gain or lose on an investment with a predictable rate of ...

A stock's historical variance measures the difference between the stock's returns for different periods and its average return. A stock with a lower variance typically generates returns that are ...

Reviewed by Thomas J. CatalanoFact checked by Ryan EichlerReviewed by Thomas J. CatalanoFact checked by Ryan Eichler Corporate accountants and financial analysts often use the capital asset pricing ...

Many advisers seldom — if ever — take the time to determine the return of investments on their own. Often, they will rely on third-party calculations for the average annualized performance of funds ...

Both organizations and private individuals invest their resources in order to earn profits on their investments. Profitability can be measured using either income or the rate of return. Income is the ...

Stock's historical variance measures its return stability over time. Higher variance indicates greater return unpredictability and risk. Calculate variance using Excel to simplify the process for ...