instruction stringlengths 5 1.05k | output stringlengths 6 22.3k | input stringclasses 1
value |
|---|---|---|
what is an exchange | an exchange is a marketplace where securities commodities derivatives and other financial instruments are traded the core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange exchanges give companies governments an... | |
what are exchange controls | exchange controls are government imposed limitations on the purchase and or sale of currencies these controls allow countries to better stabilize their economies by limiting in flows and out flows of currency which can create exchange rate volatility not every nation may employ the measures at least legitimately the 14... | |
what is exchange of futures for physical efp | exchange of futures for physical efp is a private agreement between two parties to trade a futures position for the basket of underlying actuals an exchange of futures for physicals can be used to open a futures position close a futures position or switch a futures position for the underlying asset understanding exchan... | |
when two parties have agreed to an exchange of futures for physicals they then register the transaction with the relevant exchange exchange of futures for physical is also referred to as exchange of futures for product and exchange of futures for cash as in cash commodity | the term exchange of futures for physical is generally used to describe transactions of this nature even when the underlying are financial products rather than cash commodities exchange of futures for swap efs can be used if the futures position is being traded for a swap contract example of exchange of futures for phy... | |
what is the difference between physical and cash settlement | a cash settlement is where the seller delivers to the buyer the net position in cash rather than the underlying asset of the derivatives contract in a physical settlement the underlying asset is delivered to the buyer rather than a net cash position physical settlement carries more risk and is less liquid | |
what happens in a physical settlement | a physical settlement can be quite complex depending on the underlying asset of the derivative for example if a physical settlement was in corn it involves the delivery of corn to the buyer this will include storage of the corn transportation of the corn inspection of the corn and then final movement of the corn to the... | |
what is the fx exchange for physical | an fx exchange for physical involves simultaneous transactions in the cash and futures markets this is an ex pit transaction that can take place outside of the central limit order book as approved under rule 538 2the bottom linethe exchange of futures for physical efp allows two parties to swap equivalent positions in ... | |
what is an exchange rate | an exchange rate is the value of a nation s currency when it is traded for another currency the relative strength or weakness of a nation s currency has a strong impact on its trade with other nations on its tourism industry and on the prices its consumers pay for imports exchange rates are always viewed in relation to... | |
how exchange rates fluctuate | exchange rates can be free floating or fixed a free floating exchange rate rises and falls due to changes in the foreign exchange market a fixed exchange rate is pegged to the value of another currency the hong kong dollar is pegged to the u s dollar in a range of 7 75 to 7 85 so the value of the hong kong dollar to th... | |
how do exchange rates affect the supply and demand of goods | changes in exchange rates affect businesses by increasing or decreasing the cost of supplies and finished products that are purchased from another country it changes for better or worse the demand abroad for their exports and the domestic demand for imports significant changes in a currency rate can encourage or discou... | |
what is the forex | the forex market also known as the f x is an over the counter marketplace for trading currencies this 24 hour market is responsible for trillions of dollars in daily trading activity as central banks financial institutions and speculators swap currencies to profit from their price movements or hedge against future pric... | |
what is a restricted currency | a restricted currency has its value set by the government some countries have restricted currencies meaning they restrict the exchange of their currency to within their borders or establish both an onshore rate and an offshore rate china is an example the chinese government sets a midpoint value for the currency every ... | |
what is an exchange rate mechanism erm | an exchange rate mechanism erm is a set of procedures used to manage a country s currency exchange rate relative to other currencies it is part of an economy s monetary policy and is put to use by central banks such a mechanism can be employed if a country utilizes either a fixed exchange rate that is bounded by a curr... | |
what is the exchange ratio | the exchange ratio is the relative number of new shares that will be given to existing shareholders of a company that has been acquired or that has merged with another after the old company shares have been delivered the exchange ratio is used to give shareholders the same relative value in new shares of the merged ent... | |
what is an exchange traded derivative | an exchange traded derivative is a financial contract that is listed and traded on a regulated exchange simply put these are derivatives that are traded in a regulated environment exchange traded derivatives have become increasingly popular because of the advantages they have over over the counter otc derivatives these... | |
what information does a derivative contract include | generally a contract will detail such things as the asset involved the dollar value or amount e g face amount or lot size of the security the settlement date and process trading hours price quotation and the contract expiration date | |
what are some types of derivatives traded on an exchange | some exchange traded derivatives include stock options currency futures options and swaps and index futures | |
why are exchange traded derivatives appealing to investors | investors large and small appreciate the fact that these investments are understandable reliable and liquid contract features are clear parties to a contract must abide by it default risk is eliminated exchanges are regulated trust in financial markets translates to liquidity which in turn means efficient access and pr... | |
what is an exchange traded fund etf | an exchange traded fund etf is a pooled investment security that can be bought and sold like an individual stock etfs can be structured to track anything from the price of a commodity to a large and diverse collection of securities etfs can even be designed to track specific investment strategies various types of etfs ... | |
how etfs work | an etf must be registered with the securities and exchange commission in the united states most etfs are set up as open ended funds and are subject to the investment company act of 1940 except where subsequent rules have modified their regulatory requirements 2 open end funds do not limit the number of investors involv... | |
when an ap sells stocks to the etf sponsor in return for shares in the etf the block of shares used in the transaction is called a creation unit if an etf closes with a share price of 101 and the value of the stocks that the etf owns is only worth 100 on a per share basis then the fund s price of 101 was traded at a pr... | conversely an ap also buys shares of the etf on the open market the ap then sells these shares back to the etf sponsor in exchange for individual stock shares that the ap can sell on the open market as a result the number of etf shares is reduced through the process called redemption the amount of redemption and creati... | |
what was the first exchange traded fund etf | the distinction of being the first exchange traded fund etf is often given to the spdr s p 500 etf spy launched by state street global advisors on jan 22 1993 1 there were however some precursors to the spy notably securities called index participation units listed on the toronto stock exchange tsx that tracked the tor... | |
how is an etf different from an index fund | an index fund usually refers to a mutual fund that tracks an index an index etf is constructed in much the same way and will hold the stocks of an index tracking it however the difference between an index fund and an etf is that an etf tends to be more cost effective and liquid than an index mutual fund you can also bu... | |
do etfs provide diversity | nearly all etfs provide diversification benefits relative to an individual stock purchase still some etfs are highly concentrated either in the number of different securities they hold or in the weighting of those securities for example a fund that concentrates half of its assets in two or three positions may offer les... | |
what are exchange traded notes etns | exchange traded notes etns are types of unsecured debt securities that track an underlying index of securities and trade on a major exchange like a stock etns are similar to bonds but do not have interest payments instead the prices of etns fluctuate like stocks investopedia michela buttignol | |
how exchange traded notes work | an etn is typically issued by financial institutions and bases its return on a market index etns are a type of bond at maturity the etn will pay the return of the index it tracks however etns do not pay any interest payments like a bond 1 | |
when the etn matures the financial institution takes out fees and then gives the investor cash based on the performance of the underlying index since etns trade on major exchanges like stocks investors can buy and sell etns and make money from the difference between the purchase and sale prices minus any fees 2 | etns are different from exchange traded funds etfs etfs own the securities in the index they track for example an etf that tracks the s p 500 will own all 500 stocks in the s p etns do not provide investors ownership of the securities but are merely paid the return that the index produces as a result etns are similar t... | |
what is the difference between an etf and an etn | both exchange traded funds etfs and exchange traded notes etns are securities that track an index an etf outright owns the underlying securities of the index while an etn is like a bond it is an unsecured debt note issued by a financial institution that pays out the return over the index over a period of time | |
how do you buy exchange traded notes | exchange traded notes etns can be bought directly from the issuing institution or online through a brokerage they can be bought like stocks or etfs that are listed on an exchange | |
what are the risks of etns | exchange traded notes etns have risks such as liquidity risk credit risk closure risk volatility risk and price deviation risk the bottom lineexchange traded notes etns are a simple way to gain exposure to debt securities an etn is a debt security issued by a financial institution that tracks an index there is no owner... | |
what is an exchange traded product etp | exchange traded products etps are instruments that track underlying securities an index or other financial products etps trade on exchanges similar to stocks meaning shares can be purchased and prices can fluctuate throughout a trading day etp share prices are derived from the underlying investments that they track typ... | |
how do exchange traded products etps differ from traditional investment options | etps differ from traditional investment options such as mutual funds in their structure and tradability etp shares are traded on stock exchanges throughout the trading day at market prices providing intraday liquidity and flexibility traditional options often involve buying or selling at the end of the trading day at t... | |
are etps traded on stock exchanges | yes etps are traded on stock exchanges this means that investors can buy and sell etp shares throughout the trading day at market prices the stock exchange environment enhances liquidity and provides real time pricing information for etps 1 | |
how do leveraged and inverse etps work | leveraged etps seek to magnify the returns of an underlying index or asset class using financial derivatives and debt inverse etps on the other hand aim to provide the opposite inverse performance of the underlying index these etps are designed for sophisticated investors seeking to capitalize on short term market move... | |
what are the risks associated with investing in etps | investing in etps carries various risks including market risk liquidity risk tracking error and specific risks associated with the underlying assets market conditions geopolitical events and interest rate changes can impact etps performance 12 in many ways an etp can be considered similar to a stock consider all the wa... | |
what is an excise tax | an excise tax is a legislated tax on specific goods or services at the time they are purchased they re intranational taxes imposed within a government infrastructure rather than international taxes imposed across country borders 1 a federal excise tax is usually collected from motor fuel sales airline tickets tobacco a... | |
how an excise tax works | excise taxes are primarily for businesses many of them are paid by merchants who then pass the tax on to consumers through higher prices merchants pay excise taxes to wholesalers and consider them in product pricing which increases the retail price overall 2 as such consumers may or may not see the cost of most excise ... | |
what is a federal excise tax | a federal excise tax is charged on certain goods and services by the federal government it may or may not be included by the merchant into the price this means that consumers don t pay these taxes directly as they would any other type of tax such as income taxes federal excise taxes are commonly imposed on things like ... | |
how is an excise tax different from a sales tax | excise and sales taxes are two different types of taxes an excise tax is imposed on specific goods and is generally the responsibility of the merchant to pay to the government the merchant in turn may or may not pass the tax on to the consumer by adding it into the price a sales tax on the other hand is charged on almo... | |
what is an exculpatory clause | an exculpatory clause is a contract provision that relieves one party of liability if damages are caused during the execution of the contract the party that issues the exculpatory clause is typically the one seeking to be relieved of the potential liability for example a venue may print an exculpatory clause on tickets... | |
what is an execution | execution is the completion of a buy or sell order for a security the execution of an order occurs when it gets filled not when the investor places it when the investor submits the trade it is sent to a broker who then determines the best way for it to be executed understanding executionbrokers are required by law to g... | |
how orders get executed | best execution and broker obligationsby law brokers are obligated to give each of their investors the best possible order execution 1 there is however the debate over whether this happens or if brokers are routing the orders for other reasons like the additional revenue streams we outlined above let s say for example y... | |
what is an executive mba emba | executive master of business administration is a degree program similar to a master of business administration mba program but specifically designed for corporate executives and senior managers already in the workforce an executive mba program referred to as an emba enables executives to earn the degree while continuin... | |
is an emba worth it | the question of whether an emba degree program would be worthwhile depends on your set of requirements career goals basic needs lifestyle and so on generally an excellent place to begin this investigation is by looking at time and money factors emba programs are not cheap and can cost as much as 200 000 so whether you ... | |
what is an executor | an executor of an estate is an individual appointed to administer the last will of a deceased person and carry out the instructions to manage the affairs they are appointed either by the testator or a court executors ensure all assets in the will are accounted for and transfer these assets to the correct beneficiary as... | |
what is an exempt employee | the term exempt employee refers to a category of employees set out in the fair labor standards act flsa exempt employees do not receive overtime pay and do not qualify for minimum wage this is based on the type of work they perform when an employee is exempt it primarily means that they are exempt from receiving overti... | |
what are the requirements of being an exempt employee | the fair labor standards act classifies exempt employees as anyone doing jobs that fall into these categories professional administrative executive outside sales stem science technology engineering and math related and computer related the flsa stipulates that employees in the above categories are exempt if they are pa... | |
what are the advantages of being an exempt employee | the advantages of being an exempt employee start with the security of knowing that you have a steady paycheck also exempt employees tend to earn more than hourly ones and have access to extras such as retirement benefits including individual retirement accounts 401 k plans and pensions bonuses employer sponsored health... | |
what are the disadvantages of being and exempt employee | the main disadvantages lie in not being eligible for overtime or qualifying for minimum wage depending on the mindset of your employer you could find yourself working long hours to fulfill an overloaded work portfolio without any recourse for additional reimbursement or reducing the stress brought on by the long hours ... | |
what is exempt income | exempt income refers to certain types of income not subject to income tax some types of income are exempt from federal or state income tax or both the irs determines which types of income are exempt from federal income tax and the circumstances for each exemption states have their own rules that define what counts as e... | |
when you file your taxes you can choose between taking the standard deduction or itemizing your deductions examples of itemized deductions include medical expenses mortgage interest and charitable donations | examples of exempt incomedistributions from health savings accounts hsas are only exempt from income tax if they are used for qualified medical expenses qualified distributions from roth 401 k plans and roth iras funded with after tax dollars are tax exempt 8910other investments may also be protected from income tax fo... | |
what types of income are tax exempt | income from municipal bonds and distributions from roth 401 k s and roth iras are tax exempt 116income from employer sponsored benefits including supplemental disability insurance and most benefits from employer sponsored health insurance plans are exempt 2 | |
is unemployment income taxed | unemployment benefits are treated as ordinary income by the federal government but not all states tax unemployment income unemployment compensation is taxed based on the program paying the benefits 17 | |
how much is the gift tax | in 2023 gifts worth less than 17 000 are not subject to income tax this value increases to 18 000 in 2024 4the bottom linealmost all forms of income are taxable including wages salaries tips and other types of income from an employer or as a freelancer but certain forms of income aren t taxable exempt income includes t... | |
what is an exempt interest dividend | an exempt interest dividend is a distribution from a mutual fund that is not subject to federal income tax exempt interest dividends most often are derived from mutual funds that invest in municipal bonds while exempt interest dividends are not subject to federal income tax they may still be subject to state income tax... | |
how can i avoid paying tax on investment income | there are a number of investments and savings vehicles that yield returns that are tax free at least at the federal level the biggest category of these is municipal bonds these are issued by state and local governments and public institutions like school districts and water departments in order to raise money the money... | |
are mutual fund distributions taxable | almost always the exception is the exempt interest dividends that are paid to shareholders of mutual funds that invest some or all of their assets in tax exempt municipal bonds the amount of taxable distributions and any tax exempt distributions that you have received from a mutual fund will be recorded in the irs form... | |
why does tax exempt interest count as taxable income for alternative minimum tax | the alternative minimum tax is designed to capture some taxes from very high income people who use every possible deduction and loophole to reduce or eliminate the taxes they owe tax exempt municipal bonds are a good way to reduce the taxes owed on unearned income adding those distributions to gross income for people a... | |
what is an exempt transaction | an exempt transaction is a type of securities transaction where a business does not need to file registrations with any regulatory bodies provided the number of securities involved is relatively minor compared to the scope of the issuer s operations and that no new securities are being issued understanding exempt trans... | |
what is an exemption | an exemption reduces the amount of income that is subject to income tax there are a variety of exemptions allowed by the internal revenue service irs previously the two most common types were personal and dependent exemptions but with the changes brought about by the 2017 tax cuts and jobs act tcja the personal exempti... | |
how an exemption works | prior to the tax cuts and jobs act there used to be a personal exemption it could be claimed in addition to the standard deduction by people who did not itemize their tax deductions instead there is now one higher standard deduction passed with the tcja while exemptions used to make a bigger difference in calculating y... | |
what is a qualified dependent | a dependent is a person who relies on someone else for financial support and typically includes children or other relatives the irs determines who qualifies as a dependent only one taxpayer can claim a given dependent on their income tax return 10 | |
what type of income is tax exempt | income from municipal bonds is exempt from taxes 2 distributions from health savings accounts hsas are exempt if they are used for qualified medical expenses 8 qualified distributions from roth 401 k plans and roth iras are also tax exempt 11 | |
how much is the standard deduction | the standard deduction for tax year 2022 is 12 950 if you file as single or married filing separately and 25 900 for those who are married and file jointly in 2023 it increases to 13 850 if you file as single and 27 700 for married taxpayers filing jointly 3 | |
what is exercise | exercise means to put into effect the right to buy or sell the underlying financial instrument specified in an options contract in options trading the holder of an option has the right but not the obligation to buy or sell the option s underlying security at a specified price on or before a specified date in the future... | |
what is an exercise price | the exercise price is the price at which an underlying security can be purchased or sold when trading a call or put option respectively it is also referred to as the strike price and is known when an investor initiates the trade an option gets its value from the difference between the fixed exercise price and the marke... | |
what is an exit strategy | an exit strategy is a contingency plan executed by an investor venture capitalist or business owner to liquidate a position in a financial asset or dispose of tangible business assets once predetermined criteria have been met or exceeded an exit strategy may be executed to exit a nonperforming investment or close an un... | |
why is it important to have an exit plan | businesses and investors should have a clearly defined exit plan to minimize potential losses and maximize profits on their investments here are several specific reasons why it s important to have an exit plan 12removes emotions an exit plan removes emotions from the decision making process having a predetermined level... | |
why is it important to have an exit plan | businesses should have a clearly defined exit plan to help manage risk and capitalize on opportunities specifically an exit plan helps remove emotion from decision making assists with strategic direction helps to plan for unexpected events and provides details about an actionable succession plan | |
what are common exit strategies used by startups | exit strategies used by early stage companies include initial public offerings ipos strategic acquisitions and management buyouts mbos entrepreneurs typically select an exit plan before launching a business that fits their longer term business development decisions and goals the exit strategy that an entrepreneur choos... | |
what are common exit strategies used by established companies | more established companies favor mergers and acquisitions as an exit strategy because it often leads to a favorable deal for shareholders particularly if a rival company wants to increase its market share or acquire intellectual property larger companies may exit a loss making business by liquidating their assets or de... | |
what exit strategies can investors use | investors can capitalize on gains and reduce risk by using exit strategies such as the 1 rule a percentage based exit a time based exit or selling their equity stake in a business to other investors or family members investors typically set an exit strategy before entering into an investment as it helps to manage emoti... | |
what is exogenous growth | exogenous growth a key tenet of neoclassical economic theory states that economic growth is fueled by technological progress independent of economic forces understanding exogenous growththe exogenous growth theory states that economic growth arises due to influences outside the economy the underlying assumption is that... | |
what is an exotic option | exotic options are a category of options contracts that differ from traditional options in their payment structures expiration dates and strike prices the underlying asset or security can vary with exotic options allowing for more investment alternatives exotic options are hybrid securities that are often customizable ... | |
why trade exotic options | exotic options have unique underlying conditions that make them a good fit for high level active portfolio management and situation specific solutions complex pricing of these derivatives may give rise to arbitrage which can provide great opportunities for sophisticated quantitative investors arbitrage is the simultane... | |
what is the expanded accounting equation | the expanded accounting equation is derived from the common accounting equation and illustrates in greater detail the different components of stockholders equity in a company by decomposing equity into component parts analysts can get a better idea of how profits are being used as dividends reinvested into the company ... | |
how the expanded accounting equation works | sometimes analysts want to better understand the composition of a company s shareholders equity besides assets and liabilities which are part of the general accounting equation stockholders equity is expanded into the following elements contributed capital and dividends show the effect of transactions with the stockhol... | |
what is the expanded accounting equation | the expanded accounting equation is a form of the basic accounting equation that includes the distinct components of owner s equity such as dividends shareholder capital revenue and expenses the expanded equation is used to compare a company s assets with greater granularity than provided by the basic equation | |
what is the basic accounting equation | the basic accounting equation is used to calculate how much a company is worth based on the amount of money that has already been invested and the cost of any obligations the formula for the basic accounting equation is as follows | |
what is expansion | expansion is the phase of the business cycle where real gross domestic product gdp grows for two or more consecutive quarters moving from a trough to a peak expansion is typically accompanied by a rise in employment consumer confidence and equity markets and is also referred to as an economic recovery understanding exp... | |
when the economy needs a lift policymakers try to lower borrowing costs encouraging businesses and consumers to spend more when the federal reserve fed cuts interest rates saving is no longer favorable and the expansion phase begins money flows freely through the economy companies take on loans to fund expansion job pr... | eventually the cheap flow of money and subsequent increase in spending will cause inflation to rise leading central banks to hike interest rates suddenly the onus is on encouraging people to rein in on spending and moderating economic growth company revenues fall share prices decline and the economy contracts again sev... | |
what is an expansionary policy | expansionary policy is a form of macroeconomic policy that seeks to encourage economic growth by increasing aggregate demand it can consist of either monetary policy or fiscal policy or a combination of the two it is part of the general policy prescription of keynesian economics to be used during economic slowdowns and... | |
how expansionary policy is implemented | expansionary monetary policy is implemented by central banks to stimulate economic growth and combat economic slowdown for the united states the federal reserve is overseen by a collection of individuals this board of governors that oversees the federal reserve system proposes reviews and votes on proposed regulation t... | |
when interest rates are lowered the availability of credit is increased this leads to an increase in consumer spending driving economic growth after all the end goal of expansionary policy is to heat up the economy the primary effect or intended effect of expansionary policy is to make people acquire and spend more mon... | this effect also translates into business activity expansionary policy can also stimulate business investment by making it cheaper to borrow money for capital expenditures leading to increased job creation and economic growth for this reason it s common for jobs to have more job openings or job creations during expansi... | |
what are some examples of expansionary monetary policy | the federal reserve often tweaks the federal funds reserve rate as its primary tool of expansionary monetary policy increasing the fed rate contracts the economy while decreasing the fed rate increases the economy | |
how does expansionary policy affect inflation | expansionary policy often has the unintended consequence of creating or increasing inflation the federal reserve usually has to choose between combatting unemployment and inflation any policies set forth to battle one usually increases the other this is because expansionary policy usually means people have more money a... | |
what monetary policy reduces inflation | opposite of expansionary policy the federal reserve may also enact contractionary policies these policies are meant to slow the economy make debt more expensive to come by and shrink the money supply by slowing the economy reducing consumer demand and slowing business growth inflation often slows though unemployment is... | |
what is an expatriate | an expatriate or expat is an individual living and or working in a country other than their country of citizenship the arrangement is often temporary and for work reasons an expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another understanding expatriat... | |
what is expectations theory | expectations theory attempts to predict what short term interest rates will be in the future based on current long term interest rates the theory suggests that an investor earns the same interest by investing in two consecutive one year bond investments versus investing in one two year bond today the theory is also kno... | |
what is the expected loss ratio elr method | expected loss ratio elr method is a technique used to determine the projected amount of claims relative to earned premiums the expected loss ratio elr method is used when an insurer lacks the appropriate past claims occurrence data to provide because of changes to its product offerings and when it lacks a large enough ... | |
how to calculate expected loss ratio elr method | to calculate the expected loss ratio method multiply earned premiums by the expected loss ratio and then subtract paid losses | |
what does the elr method tell you | insurers set aside a portion of their premiums from underwriting new policies in order to pay for future claims the expected loss ratio is used to determine how much they set aside it s also important to note that the frequency and severity of the claims they expect to experience also plays a role insurers use a variet... | |
what is expected value | expected value ev is a term used by those in the investment industry to denote the anticipated average value of an investment at some point in the future investors use expected value to estimate the worth of investments often relative to their risk by calculating evs investors can choose the scenario most likely to pro... | |
where | thus the ev of a random variable x is taken as each value of the random variable multiplied by its probability and each of those products is summed expected value in portfolio constructioninvestors need to understand several key factors when they want to construct their investment or financial portfolios these include ... | |
what is a dividend stock s expected value | the expected value of a stock is estimated as the net present value npv of all future dividends that the stock pays if you can estimate the growth rate of the dividends you can predict how much investors should willingly pay for the stock using a dividend discount model such as the gordon growth model ggm however it sh... | |
how do i find the expected value of a stock that doesn t pay dividends | for non dividend stocks analysts often use a multiples approach to come up with expected value for example the price to earnings p e ratio is often used and compared to industry peers so if the tech industry has an average p e of 25x a tech stock s ev would be 25 times its earnings per share again this is different tha... | |
how is the expected value of a stock used in portfolio theory | modern portfolio theory and related models use mean variance optimization to come up with the best portfolio allocation on a risk adjusted basis risk is measured as the portfolio s standard deviation and the mean is the expected value expected return of the portfolio this does utilize the concepts presented in this art... | |
what is expected return | the expected return is the profit or loss that an investor anticipates on an investment that has known historical rates of return ror it is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these results investopedia paige mclaughlinunderstanding expected returnexpected ret... | |
where i indicates each known return and its respective probability in the series | the expected return is usually based on historical data and is therefore not guaranteed into the future however it does often set reasonable expectations therefore the expected return figure can be thought of as a long term weighted average of historical returns in the formulation above for instance the 5 expected retu... | |
where | in essence this formula states that the expected return in excess of the risk free rate of return depends on the investment s beta or relative volatility compared to the broader market the expected return and standard deviation are two statistical measures that can be used to analyze a portfolio the expected return of ... |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.