Discover how the risk-adjusted discount rate reflects investment risk and return, helping you to evaluate the valuation of projects with potential risk.

High inflation and expensive equities lead to a negative risk-return relationship and shrink the equity premium to zero. Given today’s market dynamics, investors should avoid high-volatility stocks or ...

High risk-adjusted returns suggest efficient performance for the invested capital. Low risk-adjusted returns indicate potentially suboptimal investments. Comparing risk-adjusted returns helps select ...

In finance, it's generally believed that taking on more risk should lead to higher returns. It doesn't. It's a puzzle that has long confused financial experts. Subscribe to our newsletter for the ...