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Capital asset pricing model ( including size premium and specific risk)

In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an ... more

Capital asset pricing model

In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be ... more

Security market line (SML)

Security market line (SML) is the representation of the capital asset pricing model. It displays the expected rate of return of ... 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

Security characteristic line

Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that ... more

Weighted average cost of capital

The weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets. It is the ... more

Financial leverage

In finance, leverage is a general term for any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed ... 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

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

Dividend discount model ( Gordon growth model)

The dividend discount model is a method of valuing a company’s stock price based on the theory that its stock is worth the sum of all of its future ... 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

Tier 1 capital

Tier 1 capital is the core measure of a bank’s financial strength from a regulator’s point of view. It is composed of core capital, which ... more

Implied repo rate

A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is the sale of securities together with an agreement for the seller to ... more

Capital Adequacy Ratio

Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ... 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

Hamada's equation

In corporate finance, Hamada’s equation, is used to separate the financial risk of a levered firm from its business risk. Hamada’s equation relates the ... 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

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

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

Active return

In finance, active return refers to that segment of the returns in an investment portfolio that is due to active management decisions made by the portfolio ... more

Adjusted 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

Envy ratio

Envy ratio in finance is the ratio of the price paid by investors to that paid by the management team for their respective shares of the equity. This ... more

Degree of Operating Leverage

In finance, leverage is a general term for any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed ... more

Degree of Combined Leverage

In finance, leverage is a general term for any technique to multiply gains and losses.Most often it involves buying more of an asset by using borrowed ... more

Degree of Financial Leverage

n finance, leverage is a general term for any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed ... more

Declining Balance Method (depreciation rate)

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

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

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

G-measure

The G-measure is the geometric mean of Recall and Precision. Precision (also called positive predictive value) is the fraction of retrieved instances that ... more

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