Diversifiable risk: related pages

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

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.

Arbitrage pricing theory; a valuation method which is theoretically sound but which is difficult to apply in practice.

Securities whose value falls if certain events take place. An alternative to insurance and a way of securitising insurance.

The time taken to recover the initial investment. A seriously flawed method of evaluating investments.