Category: Business
Created by: SingleWriter
Number of Blossarys: 3
English (EN) The first assumption of capital market theory is that all investors invest efficiently. This means that investors will remain in the investing frontier and will make choices that are rational and ...
Risk cannot really be defined by a fixed definition or formula but one can certainly calculate it to get a good idea about its implications. One way to do it is by calculating the standard deviation ...
Risk premium is basically the excess that an investor earns over the risk free rate by investing in a risky asset or stock. It is considered as a reward for the investor who is willing to take a ...
When standard deviation is squared, it gives the figure of variance. Variance of return can calculated by determining probability-weighted average of squared deviations from the expected value. It is ...
Standard deviation is a tool that is used to determine how volatile an investment is. Some analysts also call it historical volatility since it predicts future volatility by looking at historical ...
Average return basically tells how much an investor has earned on his investment on average in a certain year over a certain period. It is calculated by dividing total return on investment by the ...
This is the return that an investor gets after holding his investment for a certain number of years, let's say 'n' years. Each year's return is calculated separately and then summed up together to ...
