EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is the Capital Market Line?
The Capital Market Line is a complex concept, but put simply, it is a calculation meant to give the investor/analyst a range of potential returns for a portfolio, based on the risk free rate and the standard deviation of the portfolio.
The Capital Market Line is a part of the capital asset pricing model (CAPM) that solves for expected return at various levels of risk. It takes into consideration a portfolio’s risk assets and the risk-free rate.
As such, an investor can alter the capital market line (and expected returns), by altering the relative weights of the risk assets and the risk-free assets in the portfolio.
What is the Security Market Line?
What is a Resistance Line?
What does net long mean?
Net long means to own more long positions than short positions. Being long means to own a security or derivative
Should I Hold an Annuity Within My IRA?
An IRA already provides the investor with tax-deferred growth, so an annuity will not provide any additional tax benefits
What is asset allocation?
Asset allocation is theoretically the best way to control the return you experience, through diversification
How much time should I spend thinking about my investments?
Some investors become somewhat obsessive about their portfolio, and it can cause them to lose focus at their own job...
What are the Vesting Rules for my SEP IRA?
SEPs are funded entirely by employer contributions, and these contributions are immediately vested for the employee
What are Materials Stocks?
Companies in the Materials sector have business interests in raw materials, such as steel, aluminum, and iron ore
What is a market-on-open order?
Market-on-open orders are looking to buy or sell immediately after the market opens, at the opening price
What is Dividend Enhanced Convertible Stock (DECS)?
DECS - This is a type of automatically convertible security that comes in the form of preferred stock shares, which...
What is the Investment Advisors Act of 1940?
The IAA sought to regulate an industry that was deemed to be of public concern and within the Federal jurisdiction
What is Underwriting?
Underwriting is the process through which risks are accepted by an institution. Underwriting is the assessment of risk