What Is Value at Risk (VaR)? Risk Exposure Explained Value at Risk (VaR) is a statistical measure of the level of financial risk within a firm, portfolio, or trading position over a specific time frame. This measure is most commonly used by investment and commercial banks. It helps them to […]
Economics
5 posts
Market Risk Premium – Understanding & Calculating Market Premiums What Is Market Risk Premium? The market risk premium is the difference between the expected return on a market portfolio as compared to a risk-free rate of return. This premium is the additional return an investor should receive, or expect to […]
Price to Earnings Ratio (P/E Ratio) – What it Is & How to Calculate What Is Price to Earnings Ratio – P/E Ratio? The price to earnings ratio (P/E ratio) is a quick measure for valuing a company. It measures the company’s current share price in relation to its earnings-per-share […]
What Is the Interest Coverage Ratio Formula? The interest coverage ratio formula is a both a debt ratio and profitability ratio. The ratio measures the number of times a company can make interest payments on its debt with its earnings before interest and taxes (EBIT). It is used to determine […]
What is Gross Domestic Income (GDI) vs Gross Domestic Product (GDP)? Gross Domestic Income (GDI) Gross domestic income (GDI) is a measure of total economic activity. It is based on all the income earned while producing goods and providing services through economic activity. Key Points Gross domestic income (GDI) is […]