We are a few weeks into the series of finance-related posts. I figured I would explain this series a little before we go into today’s topic. I am currently working on an Masters of Business Administration at Cardinal Stritch University, in Glendale, WI. As I go through my homework, I often find that the textbook …
Continue reading "What is the Weighted Average Cost of Capital?"Last week, we talked about what a company’s beta is. I figured that this week, we would learn about the Capital Asset Pricing Model (CAPM). According to Investopedia, the CAPM is “a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.” According to the third edition of …
Continue reading "What is the capital asset pricing model?"This is a topic that I recently dealt with within an assignment for class. Investopedia defines a company’s beta as “a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.” According to the third edition of Corporate Finance: Core Principles & Applications, when you …
Continue reading "What is a company’s beta?"