# Posts Tagged ‘valuation’

## What is the Agency Problem?

Within corporate finance, the agency problem is considered as the conflict of interest between the company’s managers and its stockholders.

Read Full Post## What Is Arbitrage Pricing Theory?

The Arbitrage Pricing Theory is a method used to estimate the returns on assets and portfolios. It is a model based on the linear relationship between an asset’s expected risk and return.

Read Full Post## What is the Modigliani–Miller Theorem?

The Modigliani-Miller Theorem suggests that a company’s capital structure and the average cost of capital does not have an impact on its overall value.

Read Full Post## What is the Gordon Growth Model?

The Gordon growth model, or GGM, is used to calculate the intrinsic value of a stock from future dividends. The model only works for companies that pay out dividends, which have a constant growth rate.

Read Full Post## What is Modern Portfolio Theory and Portfolio Risk?

Modern Portfolio Theory is a theory presented in 1952 by Harry Markowitz on how risk-averse investors can create portfolios to maximize the return on investments based on the optimal levels of risk.

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