Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because ...

When it comes to managing a portfolio with hundreds of millions or billions of dollars, it’s important to have a firm handle on risk. Specifically, fund managers need to calculate the Value at Risk ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The liquidation value of a company represents the total value of its assets if the company were to go out of business and liquidate its assets to pay off debts. For investors, understanding a ...

All investments have some level of risk, and bonds are no exception. Some bonds have virtually no chance of default, such as U.S. Treasuries, while others have a significant default risk. Companies ...

You’re sitting across from an angel investor, heart racing, as they ask the question you knew was coming: “So… what’s your ...

Opinions expressed by Entrepreneur contributors are their own. The process of business risk calculation is identifying potential threats to your business and then analyzing those probabilities to make ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...

Lifetime value (LTV) is a significant metric that helps estimate the growth of a company. By comparing LTV to customer acquisition cost, the results can help make crucial decisions. This might include ...