Edward J. Strafaci ~ Academic Blog

CAPM (Capital Asset Pricing Model) It describes the relationship between risk and expected return of a security. Its an integral part of WACC as it calculates the cost of equity & WACC can be used to find the NPV of the future cash flows of an investment and to further calculate its enterprise value and finally its equality value. The formula to calculate the expected return of an asset given its risk is as follows: Expected Return = Risk-Free Rate + (Beta x Market Risk Premium) ER 1- Expected Return of investment Rf = Risk=-free rate (typical to the yield on 10-year government bond) Bi = Beta of the investment is a measure of a stock’s risk (volatility) reflected by measuring the fluctuation of its price changes relative to the overall market (the stock’s sensitivity to market risk). For example, if the beta is equal to 1, the expected return on a security is equal to the average market return, in this case (AAPL USA) the Beta is 1.009 the security has a .009% of the v...

Vanguard won’t let investors trade these 400 popular funds and securities — here’s why - MarketWatch

Vanguard won’t let investors trade these 400 popular funds and securities — here’s why - MarketWatch

As the U.S. government shutdown was about to become the longest on the record and many employees missed their paychecks Friday, U.S. Postal Service workers were roaming around a Las Vegas convention center hocking a smart mailbox. The post office has been exhibiting at CES, the largest annual tech conference, for nearly two decades, including at the 2019 show, where the national mail carrier showed off its “Informed Delivery” system, an online service and app that lets registered users view grayscale images of incoming letters before they are delivered to their mailboxes. The agency also showed off a “connected home mailbox” capable of providing “capacity alerts” and delivery notices. Emily Bary/MarketWatch USPS showed off a smart mailbox at this year’s CES. An announcer speaking on a microphone encouraged visitors to stop by the booth and check out the smart mailbox that “turns the conventional home mailbox into a smart device” and represents “the future of mail delivery.” ...