Glossary

Capital Asset Pricing Model (CAPM)

Overview of Capital Asset Pricing Model The Capital Asset Pricing Model (CAPM) is a fundamental tool we use to determine the expected return…

Alpha

Understanding Alpha in Investing Alpha is a key concept in investment management, referring to an investment’s ability to beat the market or its…

Beta

Understanding Beta in Investment In this section, we dive into the essential concept of Beta and its influence on the decisions we make…

Information Ratio

Understanding the Information Ratio Information Ratio (IR) measures a portfolio’s return relative to the return of a benchmark index, adjusted for the volatility…

Return on Equity

Overview of Return on Equity Return on Equity, or ROE, is a measure of a company’s profitability that takes into account shareholders’ equity….

Debt to Equity Ratio

Debt to Equity Overview When we talk about the debt to equity ratio, we’re referring to a financial metric that compares the total…

Price-to-Earnings Ratio (P/E)

Understanding the Price-to-Earnings Ratio (P/E) As we explore financial metrics crucial for evaluating stocks, the Price-to-Earnings Ratio (P/E) stands out as a vital…

Simple Moving Average (SMA)

What is a Simple Moving Average? A Simple Moving Average (SMA) is a statistical tool we use to smooth out data by creating…

Exponential Moving Average (EMA)

What is an Exponential Moving Average (EMA)? An Exponential Moving Average (EMA) is a type of moving average that places a greater weight…

Long-Term Capital Gains

When we discuss long-term capital gains, we’re talking about the profit from the sale of an asset that we’ve held for more than…