One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.

Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using dividend-adjusted prices in return calculations.

Gain insights on portfolio management through short-term returns. Learn to calculate and interpret monthly returns for informed long-term investing decisions.