Return on Assets Formula

The return on assets formula calculates the net earnings generated by total assets during a period of time. Also known as ROA, this financial ratio shows how effectively a company uses its assets to generate money. It tells an investor or a manager how much after-tax profit each dollar of assets Read More about Return on Assets Formula

Risk Premium Formula

The formula for risk premium, also known as default risk premium, calculates the difference between the expected rate of return on investment and the risk-free rate. It is additional compensation that investors expect from an investment based on its level of risk. Risk premium is a measure that Read More about Risk Premium Formula