What Is the Statement of Shareholders’ Equity? What Is the Sharpe Ratio? What Is the SAVE Plan? What Is a Shareholder? What Is a Sales Load? What Is Simple Interest? What Is a Start-Up? What Is a Surrender Cha
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?
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...
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 ...
The Sortino ratio serves a similar purpose to the more popular Sharpe ratio, but it focuses on downside risk.
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...
It is possible to draw an upward-sloping curve to connect all of the most efficient portfolios. This curve is called theefficient frontier. Investing in a portfolio underneath the curve is not desirable because it does not maximize returns for a given level of risk. ...
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.
He'd try that one for awhile. If he guessed wrong again, well, he could change his mind at the drop of a hat . . . What I have described in microcosm is what the mutual fund industry is becoming today, in the waning years of the twentieth century, the flowering of the age of ...