Market Wisdom

Excess Returns

Understanding Excess Returns In our exploration of the financial markets, we often encounter the term “excess returns.” Understanding it can be pivotal for…

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…

Relative Strength Index (RSI)?

What is the Relative Strength Index (RSI)? The Relative Strength Index, commonly referred to as RSI, is a momentum oscillator invented by J….

Earnings per Share (EPS)

Definition of EPS Earnings per Share (EPS) is a key financial indicator that we often use to gauge a company’s profitability on a…

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…