Black swan: related pages

Beta is a measure of the correlation between the value of a security and the market. Beta is used to calculate discount rates for CAPM.

A method of valuing securities or an investment using a discounted cash flow (DCF) using a risk adjusted discount rate.

The most widely used method of option valuation. More complex models are sometimes necessary as it uses a number of simplifying assumptions.

The alpha of a security or fund is its out-performance over the risk adjusted return, with risk measured by beta.