Category: Business

**Created by: ****SingleWriter**

Number of Blossarys: 3

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 ...

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 ...

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 ...

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 ...

Dollar return is a sum of return that investors gets from dividends and from capital gain which is influenced by the change in market value of an asset or an investment. It is calculated by taking a ...

The eighth and the last assumption of capital market theory states and actually reinforces the fact that markets work in an efficient manner and due to this efficiency the instruments in the market ...