Fees: Check the fund's management fee. The fee is expressed as a percentage, like a mutual fund's expense ratio. Fund history: Know how long the fund has been in operation. Longer is better. Performance relative
What is goodwill depreciation? What is preferred equity financing? What is a qualified retirement plan? What policy is recommended for replenishments in period with zero demand? What is a private limited liability company? What is an open-ended mutual fund?
If the investor is correct and the share price has indeed declined, let's say to $70, then the investor will make $30 in profit. They sold borrowed shares for $100, repurchased them for $70, returned the shares, and pocketed the difference. If the shares of NoGood instead increase ...
For mutual funds, the FMV is often used interchangeably with the Net Asset Value (NAV). Net Asset Value of a mutual fund is the market price of a mutual fund unit. Investors can buy and sell mutual funds at the NAV. A mutual fund’s NAV is the difference between the total assets and...
A ratio higher than 2.0 is rated as very good. A ratio of 3.0 or higher is considered excellent. A ratio under 1.0 is considered sub-optimal. Warning Certain factors can affect the Sharpe ratio. For instance, adding assets to a portfolio to better diversify it can increase the ratio. Inve...
Why is this portfolio usually not the portfolio chosen by FIs to optimize the return-risk trade-off? Portfolio: The portfolio refers to the combination of the investment by the individual or the financial institution like shares, bonds, c...
What Is a Good Beta? It depends on your tolerance for risk. Look for a beta of 1 if you don't have an appetite for rolling the dice. This indicates that the security will move very closely to the market. A beta of less than 1 indicates that it's less volatile. A beta of more ...
Please note, there is a significant difference between BlackRock Floating's value and its price as these two are different measures arrived at by different means. Investors typically determine if BlackRock Floating is a good investment by looking at such factors as earnings, sales, fundamental and ...
They formulate a dynamic momentum strategy whose position is scaled proportionally to its conditional Sharpe ratio. Conditional expected returns take into account the negative effects of high market volatility and past market declines. Conditional variance is estimated using a GJR GARCH model. From 1934...
It is the level of risk an investor is willing to take when investing in the financial market. It tells about the preference of the investor in terms of the type of financial securities he/she would like to invest their money in.