Learn how to calculate Value at Risk (VaR) to effectively assess financial risks in portfolios, using historical, variance-covariance, and Monte Carlo methods.

How to Calculate a Company's Risk Premium. 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 ...

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 ...

Microsoft Excel can calculate a bank's capital-to-risk weighted assets ratio if you know the tier 1 and tier 2 capital and risk-weighted assets.

To calculate the risk-to-reward ratio in forex trading, you must know the entry price, stop-loss point and profit target. Once you’ve figured out all these metrics, you can use the formula below ...

Calculating the default risk premium Basically, to calculate a bond's default risk premium, you need to take its total annual percentage yield (APY), and subtract all of the other interest rate ...

The three inputs into a Sharpe ratio calculation are your expected return, the risk-free rate and the standard deviation.

Calculating the default risk premium To calculate a bond's default risk premium, you need to take its total annual percentage yield (APY) and subtract the other interest rate components.

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 ...