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Generalized volatility for time T

In finance, volatility is a measure for variation of price of a financial instrument over time. An implied volatility is derived from the market price of a ... more

Annualisation of logarithmic retururn

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Black-Scholes formula - value of a call option for a non-dividend-paying underlying stock

The Black–Scholes /ˌblæk ˈʃoʊlz/ or Black–Scholes–Merton model is a mathematical model of a financial market containing derivative investment instruments. ... more

Total shareholder return

Total Shareholder Return (TSR) (or simply Total Return) is a measure of the performance of different companies’ stocks and shares ... more

Sortino ratio

The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy. It is a modification of the Sharpe ratio but penalizes ... more

Beta (financial elasticity)

In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. ... more

Capital market line (CML)

Capital market line (CML) is the tangent line drawn from the point of the risk-free asset to the feasible region for risky ... more

Arithmetic Mean Return

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

Annualizing the holding period return

In finance, holding period return (HPR) is the total return on an asset or portfolio over the period during which it was held. It ... more

Relation between a rate of return and a return over a period of time ( reinvested)

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Logarithmic rate of return

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Logarithmic compounded return ( force of interest)

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Compound annual growth rate

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

Sharpe ratio

In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance ... more

Time period needed to double money

The present value formula can be rearranged logarithmic way to calculate how many years are needed for the value of the deposit to double. ( For the period ... more

Current yield

The current yield, interest yield, income yield, flat yield, market yield, mark to market yield or running yield is a financial term used in reference to ... more

Relation between the standard deviation of logarithmized sample and the non-logarithmized sample values

Log-normal (or lognormal) distribution is a continuous probability distribution of a random variable whose logarithm is normally distributed. The standard ... more

Probability density function of a log-normal distribution

In probability theory, a probability distribution assigns a probability to each measurable subset of the possible outcomes of a random experiment, survey, ... more

Logarithmic Kurtosis - 4th moment

Is a measure that describes tthe “tailedness” of the probability distribution of a real-valued random variable. Particles logarithmic mean size ... more

Logarithmic Standard Deviation - 2nd moment

Shows how much variation or dispersion from the average exists. Logarithmic mean size (1st moment) needs to be precalculated.

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Return over a single period

In finance, return is a profit on an investment. return is also used to refer to a profit on an investment, expressed as a proportion of the amount ... more

Earnings per share (basic formula)

Earnings per share is the monetary value of earnings per each outstanding share of a company’s common stock. When preferred shares are cumulative, ... more

Periodic compounding

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

Compound interest

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

Holding period return

In finance, holding period return (HPR) is the total return on an asset or portfolio over the period during which it was held. It ... more

Discounting

Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a ... more

Rule of 72 (estimating an investment's doubling time)

Rule of 72 is a method for estimating an investment’s doubling time. The rule number 72 is divided by the interest percentage per period to obtain ... more

Geosynchronous orbit

A geosynchronous orbit (sometimes abbreviated GSO) is an orbit around the Earth with an orbital period of one sidereal day ... more

Effective interest rate

The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the ... more

Straight-line depreciation method

In financial accounting, an asset is an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value ... more

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