The Capital Asset Pricing Model (CAPM) illustrates the relationship between risk and expected return in finance.
The mystical number that tells companies how much they need to return on shareholder investment to keep the capital flowing. Spoiler: It's not an American Football player's number!
Jensen's Alpha is a risk-adjusted performance measure that helps investors understand how well an investment performs against the market.
The Market Risk Premium is the extra return investors demand for taking on additional risk in the stock market.
A humorous exploration of the Security Market Line and its significance in finance.
