Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both ...

Opinions expressed by Forbes Contributors are their own. I write about the management of wealth, portfolios, and finances. “Risk” is a something of a loaded word, having a somewhat negative ...

The Black-Scholes Formula was derived by observing that ... the exercise price of the option; the risk-free interest rate (the annualized, continuously compounded rate on a safe asset with the ...

Excess return in this sense refers to the return earned above the return that could have been earned in a risk-free investment. Although there is no true risk-free investment, treasury bills are ...