In this article, we're going to look at what the Profitability Index formula is, how it works, and why it works the way it does. TL; DR The Profitability Index formula …
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Discounting Cash Flows Explained (With Example and Applications)
In this article, we're going to explore what discounting cash flows is, including what it means, how it works, and why we should even bother doing it. Let's get into it. What is Discounting Cash …
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How to Calculate Portfolio Risk From Scratch (Examples Included)
In this article, we're going to learn how to calculate portfolio risk for a 2 asset portfolio. TL;DR Portfolio risk (for a 2 asset portfolio) can be calculated as... $$ \sigma_p = …
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How to Calculate Portfolio Returns From Scratch (Example Included)
In this article, we're going to learn how to calculate portfolio returns from scratch. TL;DR Portfolio returns can be calculated using this equation: $$ r_p = \sum_{i=1}^k \omega_i …
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What is Systematic Risk (aka Beta)? How to Calculate Beta of a Stock?
In this article we're going to explore what is Systematic Risk (aka Market Risk, or "Beta"). We're also going to learn how to calculate beta (or systematic risk) from scratch. Just a quick …
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Asset Pricing Models Explained (Extensive Overview)
In this article, we're going to explore asset pricing models. Let's get into it. This is probably the most extensive article on the subject on "the internet", so you might want to grab a cup of tea …
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Discount vs Premium Bonds – Trading Status
In this article, we're going to learn about a bond's "trading status". And this brings clarity about Discount vs Premium Bonds; everything from what exactly these mean, and why they mean what they …
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What are Perpetual Bonds? How to Value Them?
What are Perpetual Bonds, aka Consols? In this article, we'll explore this; and also learn how to value perpetual bonds. Let's get into it. What are Perpetual Bonds Firstly, what are perpetual …
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How to Value Bonds – Fixed Income Valuation
In this article, we're going to explore how to value bonds (aka fixed income valuation). To keep things relatively simple, we'll focus on one specific fixed income security - straight bonds (aka …
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Correlation of Stocks Explained (Interpretation, Formula, Example)
In this article, we're going to explore the correlation of stocks, including what it is, and how we calculate stock correlation. So let's get into it. What is the Correlation of Stocks? Firstly, …
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Market to Book Ratio Explained
In this article, we're going to explore the Market to Book Ratio (aka Market to Book Multiple). For this particular Multiple, we need to know a little bit of accounting. So let's just have a …
How to Clean Text Data (Full Practical Walkthrough)
In this article, we're going to learn how to clean text data. So let's get into it. What is text cleaning? Firstly, what exactly is text cleaning? Ultimately, it's just a process of …
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