What are Capital Expenditures (CAPEX)?
Capital Expenditures, or CAPEX for short, are cash or credit payments to acquire goods or services that we capitalize in balance sheet assets. From the company’s perspective, we consider those to be an investment. Here we include all expenses that are not shown on the Income Statement and do not affect profit and loss for […]
Capital Asset Pricing Model (CAPM)
Introduction The Capital Asset Pricing Model (CAPM) shows us the relationship between systematic risk for an investment and the expected return on it. Analysts and financial professionals use the model widely for pricing risky investments and generating expected returns for assets, considering the risk and cost of capital. The CAPM goal is to see if […]