Unlevered Beta / Asset Beta
What is Unlevered Beta (Asset Beta)? Unlevered beta (a.k.a. Asset Beta) is the beta of a company without the impact of debt. It is also known as the volatility of returns for a company, without taking into account its financial leverage. It compares the risk of an unlevered company to the risk of the market. It...
Business Valuation Glossary
Business Valuation Glossary This business valuation glossary covers the most important concepts to know in valuing a company. This guide is part of CFI’s Business Valuation Modeling Course. Alpha See Firm-Specific Risk for the definition of Alpha. Beta The Beta (β) of a stock or portfolio is a number describing the correlated volatility of an...
Fixed-Income Trading
What is Fixed-Income Trading? Fixed-income trading is the process of trading fixed-income securities over-the-counter (OTC). The fixed-income market offers low transaction costs, a competitive market structure, and a large, diverse collection of market participants. The fixed-income securities market is dominated by institutional investors. What is a Fixed-Income Security? A fixed-income security, or debt security, is...
Forex Trading - How to Trade the Forex Market
How to Trade the Forex Market Whether you’re an individual trader or a financial or investment professional, the foreign exchange (forex) market, also known as the currency or foreign currency market, is where the money is. Forex trading amounts to approximately $5 trillion (yes, trillion, not billion) per day. By comparison, the approximately $700 billion...
Options Case Study – Long Call
Options Case Study To study the complex nature and interactions between options and the underlying asset, we present an options case study. It’s much easier to learn the use and payouts of options when we see it in practice. Firstly, however, let us briefly discuss the characteristics of the two main options. Options Case Study:...
