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Rule of 72 is a method for estimating an investment’s doubling time. The rule number 72 is divided by the interest percentage per period to obtain ... more

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

For periodic compounding, the exact doubling time for an interest rate of r per period is a logarithmic formula, that can be used if we want to know the ... more

Capital market line (CML) is the tangent line drawn from the point of the risk-free asset to the feasible region for risky ... more

In finance, active return refers to that segment of the returns in an investment portfolio that is due to active management decisions made by the portfolio ... more

In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. ... more

The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the ... more

In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be ... more

In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an ... more

In Valuation (finance), tax amortization benefit (or tax amortisation benefit) refers to the present value of income tax savings resulting from the tax ... more