Corporate Finance

Every investment come with risk associated with them. Some of them might be diversifiable and some others might be nondiversifiable. Nondiversifiable risk of an investment or security typically incurs as a result of not being able to diversify through multiple portfolio. In this article, we cover the nondiversifiable risk associated with investment or security including […]

Suppose you put 10,000 in a saving account with the interest of 8% and keep it there for 5 years. What would the future value at the end of year 5? With a single investment like this, its expected value at the end of year 5 is called the future value (FV) of a single

In the previous article, we have covered the future value of a mixed stream cash flow. In this article, we cover the present value of a mixed stream cash flow. The calculation is similar except for the use of the discounting factor in order to discount each cash flow to year zero. In this article,

Future value of a mixed stream cash flow is simple to calculate. It represents the future sum of returns that we will get at the future date. In this article, we cover the definition of the future value of a mixed stream cash flow, how to calculate it with example calculation as well as how

In the previous article, we have covered the present value of an ordinary annuity. In this article, we cover the present value of an annuity due in detail. This includes the definition, how to calculate it with the example, the present value of an annuity due table as well as the comparison between the present

Present value (PV) of an ordinary annuity is a measure of how much value of money now for periodic equal future cash flows at a given interest rate and timeframe. In this article, we cover the definition of the present value of an ordinary annuity, how to calculate it by using different methods as well

Future value (FV) of an annuity due measures the amount of money that you will receive in the future at a given interest rate and timeframe with a certain level of the invested money. In this article, we cover the definition of the future value of an annuity due as well as how to calculate

In the previous article, we have covered the future value of an annuity due. In this article, we cover the future value (FV) of an ordinary annuity. This includes the key definition, how to calculate it as well as how to generate the future value of an ordinary annuity table. So let’s dive in! What

Portfolio beta is commonly used to assess the risk of investment portfolios. Investors typically strive to diversify their investment portfolios by investing in a diversified investment vehicle. By diversifying the investment portfolios, they are able to reduce risks. In this article, we cover the definition of portfolio beta, how to calculate it with example and

In the concept of portfolio theory, investors get the benefit of holding portfolios of investment vehicles, not just a single asset or security. Typically, the greater the risk of portfolios the greater the return the portfolios generated. In this article, we cover the definition of portfolio return, how to calculate the portfolio return with example