Discover why unlevering beta is essential in WACC calculations for comparing debt and equity financing costs effectively.

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and beta in ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. When you invest, be prepared to ...

CatalanoFact checked by Ryan EichlerKey TakeawaysCAPM estimates the expected returns of an asset based on its risk.CAPM helps finance professionals assess investment profitability.Beta, a key ...