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How Is the Capital Intensity Ratio Calculated? How Is It

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How is the capital intensity ratio calculated? How is it used in the AFN formula?


Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk.

Alpha

A measure of the active return on an investment, indicating how much a portfolio has outperformed or underperformed relative to a benchmark index.

Beta

An indicator of an investment's relative risk compared to the market, highlighting its sensitivity to market movements.

Systematic Risk

The risk of a portfolio associated with market movements that cannot be eliminated through diversification.

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