See “Value at Risk (VaR) Example” below for the formula and how it’s calculated. Variance-Covariance Method . Rather than assuming that the past will inform the future, ...

A stock's beta is a measurement of its risk in relation to the broader stock market. The beta of the S&P 500 is always 1.0. The beta of all other stocks changes almost daily. The example above ...

Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze ...

In Walmart’s Cyber Risk Formula, Every Bug Has a Backstory. The retailer turned to actuaries, insurance experts, accountants and lawyers to help gauge security threats. By Kim S. Nash.