Exploring the Momentum Hypothesis with Elon and Lemonade

People love throwing a controversial strategy into investing. It’s nice when it could be financially beneficial. One such trading strategy that is continually debated is the Momentum Hypothesis. The hypothesis asserts that companies that go up in price over a period of time are more likely to

Accounts Receivable and Accounts Payable Articulated with a Glass of Lemonade

If you want to evaluate the health of a company, backtest the accounts receivable and accounts payable of that company. AR (accounts receivable) and AP (accounts payable) are just one way to look at a company’s performance in the stock market, but what do AR and AP mean? 

An Explanation of P/E with a Glass of Lemonade Relief

When you increase your vocabulary and understanding of financial knowledge, P/E is one of those essential concepts to nail down. If you’re new to investing, P/E is a financial metric otherwise known as the Price over Earnings ratio.

How does the S&P criteria work?

Introduction The S&P 500 has performed so spectacularly that some find its performance hard to believe. Are the stocks that make up the S&P being cherry-picked to only show the most successful performers? If the contents of this benchmark are not selected organically, its usefulness is

CAPM – Capital Asset Pricing Model

What does CAPM stand for? Capital Asset Pricing Model. The CAPM is a staple of nearly every finance course that focuses on the valuation of equity investments. Though it may be an excellent way to begin the process of teaching students how to effectively analyze securities, several assumptions

Active vs. Passive Investing

[rewrite as whether to use a collection of ETFs, a collection of stocks, or both, and extend] Everyone has different strategies for approaching investing. Some want hands-on quantitative-based investing that they can know the ins and outs of. Others are more willing to invest and let their money