Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Doretha Clemons, Ph.D., MBA, PMP, has been a corporate IT executive and professor for 34 ...

Discover how the CAPM formula calculates expected returns based on investment risk. Understand its assumptions and learn how it guides financial decision-making.

Douglas Stone—author of the new book Navigate the Investment Jungle says that MPT rests on several assumptions, and the coronavirus pandemic has revealed that some of these assumptions are ...

One of the strongest pillars of modern finance and modern portfolio theory is the belief that "return is directly correlated to risk." The argument is that, in order to get higher investment returns, ...