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 ...

You don’t need a doctoral degree in finance to calculate your portfolio’s investment returns. A few principles are enough to turn even the most math-phobic people into shrewd investors. While basic ...

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Calculating returns from your stock portfolio can be a tricky matter, especially if some of your holdings pay dividends, or you make frequent deposits and withdrawals from your account. With Excel and ...

Beta is the 2nd letter in the Greek alphabet, and the financial world uses it to refer to the sensitivity of an asset’s price compared to a specific index or benchmark. Beta is also used as a measure ...

Long-term investors know that it's important to keep perspective on the fluctuations of the financial markets. Nevertheless, looking at monthly returns on investment can give you important information ...

The Adaptive Asset Allocation (AAA) portfolio combines two different tactical approaches (momentum and minimum variance) into one algorithm. The intention of this portfolio recipe is to optimize ...

Every thriving business relies on a robust return on investment (ROI) to help gauge whether its investments are yielding a profit. Although you as an individual investor possess shallower pockets than ...

A stock index can give you a good idea of how the overall stock market, or a certain portion of the stock market is performing. The Dow Jones Industrial Average is perhaps the best-known index, but ...

It’s easy to stick money in your retirement fund and forget about it. But that doesn’t mean you should! As important as consistent saving is understanding your rate of return on investment (ROI). If ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

Calculate monthly returns by adjusting your portfolio's start/end balance with net deposits or withdrawals. Compare monthly returns to benchmarks like the Dow to assess your investment strategy. Avoid ...