returns and expected returns Calculation of the variance (and standard deviation) of returns Calculation of the covariance (and correlation) of returnsThis next section of the notes is meant to build up your intuition of the determinants of beta and project value. A detailed example ...
For example, large-cap mutual funds generally have a high positive correlation to theStandard and Poor's (S&P) 500 Indexor nearly one. Small-cap stocks tend to have a positive correlation to the S&P, but it's not as high or approximately 0.8. However,put optionprices and their underlying ...
When sales revenue is greater than the cost, the resulting profit is known as economic profit. The opportunity costs and explicit costs are subtracted at the time of computing economic profit. The main motive of each organization is the maximization of economic profit....
These figures highlight the salience of market capitalization, the total value of a company's stock. Market cap results from multiplying the number of a company's outstanding shares by its stock price. For example, if a stock trades at $10 per share with 1 million shares, its market cap ...
example, one could have three separate accounts such a broker's account, an individual retirement account (IRA) and a Roth account, and the results of these three accounts could be combined into a single account and ordered as in the invention to show over-all investment returns on a daily...