Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return. Net present value tells us ...

Indexes aren’t just important for index funds. By creating a virtual portfolio that represents the “market” (or a specific style of sector), they also establish a “typical” return and risk level that ...

(k) index funds may be more heavily weighted toward technology stocks than investors realize, which can expose them to hidden sector-specific risks.

Indexes have changed a lot over the past century. What was once state-of-the-art is now antiquated. The first indexes used information that was available, not what was best for building a portfolio.

The role of index providers in capital markets has evolved dramatically over the years. The first indices were used to help sell financial newspapers, but by the 1970s, they became the basis of index ...