Articles on Stock markets
News, Research and Analysis
What is the ‘Risk-Free Rate of Return’?
The risk-free rate of return is the rate an investor can get on a risk-free asset at a given time.
It is usually the current yield on a 10-year treasury, which is backed by the full faith and credit of the US Government and is considered risk-free. The risk-free rate is used in several calculations and considerations in finance, to show what return can be earned in the current market environment without being exposed to any risk.
This rate is usually the 10-year treasury yield, since it is backed by the US Government and is seen as risk-free. The Sharpe Ratio, for instance, is used in evaluations of risk and reward, and it subtracts the risk-free rate from the return earned or expected on an asset, before comparing it to the amount of risk taken to determine if the risk was worth it.
Other concepts of risk-return efficiency price in the risk free rate as well, such as the Security Market Line, which has a y-intercept at the risk-free rate.
When Can I Take Money Out of My 403(b)?
403(b)s have essentially the same distribution rules as 401ks. Taking money out before retirement is strongly discouraged
What Part of the Contribution into My IRA is Tax-Deductible?
You are able to deduct all of your contributions into a Traditional IRA as long as you (or your spouse) are not a
How is Ripple Different Than Bitcoin and Ethereum?
Ripple’s XRP has the third-largest market cap in the cryptocurrency world, but what gives it value?
What is the Symmetrical Triangle Bottom (Bullish) Pattern?
The Symmetrical Triangle Bottom pattern forms when a currency pair price fails to retest a high or a low and forms two trends
What is Unsystematic Risk?
Unsystematic risk is unique risk that does not reflect a direct correlation with the risk present in the market
What is the Income of the Average American?
The median household income in the United States is $52,029. In California, the average was at $61,017
What is Yield?
Yield is a term which describes the cash return on a security investment, and does not include appreciation
Is there such a thing as the “NFL effect?”
The “NFL Effect” suggests that the outcome of the Super Bowl can foretell market behavior
Is There Anything Else I Need to Know About Bonds?
The bond market is huge — actually larger than the stock market, if you can believe that — and there are literally...
What are asset classes?
Some of the most common asset classes are stocks, bonds, cash (and cash equivalents), commodities, and real estate