Downside Risk
Downside Risk
Risk is the uncertainty of losing money invested in a security. To measure the risk or volatility of security we use Sta...
Tag Archives: Assets
07
Dec
Hedge Ratio
Hedge Ratio
The ratio of exposure to a hedging instrument to the value of the hedged asset is called a hedge ratio. It compares the va...
21
Nov
Commodity-Linked Securities
Commodity-Linked Securities
Investment instruments or securities that are linked to one or more commodity prices are known as commodit...
11
Nov
Bond Tranches
Bond Tranches
Tranche is a French word meaning slice or portion. They are found in mortgage-backed securities (MBS) or asset-backed sec...
12
Oct
Efficient Frontier
Efficient Frontier
Efficient frontier or Portfolio frontier, a part of modern portfolio theory comprises efficient parts of the risk-re...
24
Sep
Standard Error vs. Standard Deviation
Standard Error vs. Standard Deviation
Standard Error & Standard Deviation are two important concepts of statistics, which are widel...
06
Sep
Cash and Carry Arbitrage
Cash and Carry Arbitrage
Arbitrage is a practice of taking benefit of price differences between two markets. A market-neutral strategy ...
02
Sep
European Options
European Options
When an investor has the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date, it is...
20
Jun
Probability of Default
Probability of Default
The probability when a borrower or debtor defaults on loan repayments, is termed as the Probability of Default ...
29
May
Difference Between ETF and Mutual Funds
Difference Between ETF and Mutual Funds
Introduction
Mutual funds and ETF offer investors pooled investment product options. Both the ...
12