Learning Track · 3 Guides
Risk & Return
CAPM, portfolio theory & the cost of capital.
Risk is not an accident of investing — it is the raw material that is priced. This track explains how markets measure risk (variance, beta, correlation), how diversification dissolves the risk you are not paid for, and how CAPM converts risk into a required return.
The track culminates in the weighted average cost of capital: the blended hurdle rate that connects everything you learn here to every valuation and capital budgeting decision the firm makes.
CAPM — Capital Asset Pricing Model
Beta, risk-free rate & the price of risk.
6 sections · 12 min read
Modern Portfolio Theory
Diversification, correlation & the efficient frontier.
6 sections · 13 min read
WACC — Weighted Average Cost of Capital
The blended hurdle rate for the whole firm.
6 sections · 13 min read
Practice this track
Reading is half the work — compute the other half. Apply this track’s concepts directly in the WACC calculator and the Capital Structure simulator.