Fervent | Finance Courses, Investing Courses
Rigorous Courses, Backed by Research, Taught with Simplicity.
In finance and economics, unsystematic risk or firm specific risk, is a type of risk that affects only a specific company. But what is unsystematic risk exactly? What makes it unique to a specific …
Continue Reading about What is Unsystematic Risk? How to Calculate It? →
In this article, we'll explore how to evaluate a stock, including: The basics of what a stock is What makes an investment riskier or less risky? How to evaluate a stock using technical …
Continue Reading about How to Evaluate a Stock (3 Main Approaches) →
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... $$ \sigma_p = …
Continue Reading about How to Calculate Portfolio Risk From Scratch (Examples Included) →
In this article, we're going to learn how to calculate portfolio returns from scratch. TL;DR Portfolio returns can be calculated using this equation: $$ r_p = \sum_{i=1}^k \omega_i …
Continue Reading about How to Calculate Portfolio Returns From Scratch (Example Included) →
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 …
Continue Reading about What is Systematic Risk (aka Beta)? How to Calculate Beta of a Stock? →
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 …
Continue Reading about Asset Pricing Models Explained (Extensive Overview) →
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, …
Continue Reading about Correlation of Stocks Explained (Interpretation, Formula, Example) →
In this article we're going to explore how to measure risk of a stock, from scratch. TL;DR If you just want to know how to measure risk of a stock, or how to calculate total risk of a stock, …
Continue Reading about How to Measure Risk of a Stock (Full Walkthrough & Intuition) →
The Capital Asset Pricing Model (CAPM; pronounced cap-M). Probably one of the most famous -- and controversial -- asset pricing models out there. Here's everything you need to know about it, including …
Continue Reading about The Capital Asset Pricing Model (CAPM) Explained →
Stock Returns. Probably the most fundamental and focal concept within investment analysis & portfolio management. How to calculate stock returns then? Perhaps more importantly, why should you …
Continue Reading about How to Calculate Stock Returns Manually, on Excel®, and on Python →
Price, Risk, and Return. 3 investment fundamentals concepts that form the very foundation of Investment Analysis & Portfolio Management. Mastering these 3 concepts will change the way you look at …
Continue Reading about Investment Fundamentals: Price, Risk, & Return →
In this article, we're going to explore what is shorting a stock (aka short selling), and we'll also discuss how it works, and why it's actually incredibly dangerous. Let's get into it. What is …
Continue Reading about What Is Shorting A Stock? How Does Shorting Work? →
