About this chapter

Stock Market Basics. How stock prices, earnings, and your own biases show up in a single stock.

Labs for this chapter

• Stock valuationValue a stock on DCF and multiples, and test the growth assumption.
• Stock analysisA fair value estimate from earnings, growth and a P/E you choose, and the return to a target price.
• Options strategyPrice eight option strategies and see payoff, break-even, and probability of profit.
• Portfolio riskMeasure volatility, beta, Sharpe ratio, and value at risk holding by holding.