- Alpha (α)
- The excess return of an investment relative to the return of a benchmark index. A measure of active manager skill.
- Beta (β)
- A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.
- Cost of Capital
- The required return necessary to make a capital budgeting project worthwhile. See WACC.
- Duration
- A measure of the sensitivity of the price of a fixed-income investment to a change in interest rates, expressed as a number of years.
- Free Cash Flow (FCF)
- The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Core input for DCF models.