None of us has a crystal ball that allows us to accurately project the price of a stock in the future. However, if we make a few basic assumptions, it is possible to determine the price a stock should ...

What Are Risk-Neutral Probabilities? Risk-neutral probabilities are probabilities of potential future outcomes adjusted for risk, which are then used to compute expected asset values. In other words, ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, ...

When it comes to managing a portfolio with hundreds of millions or billions of dollars, it’s important to have a firm handle on risk. Specifically, fund managers need to calculate the Value at Risk ...

A brain circuit that helps monkeys calculate expected rewards when faced with choices and uncertainty has been identified. Knowing which neurons contribute to value computation could inform scientists ...

Use the Gordon Growth Model for dividend stocks, requiring consistent dividend history and growth. Calculate non-dividend stock growth using CAGR, focusing on stocks with reliable growth. Economic ...