|Beta equation (Mutual Funds)|
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Definition of Beta equation (Mutual Funds)
Beta equation (Mutual Funds)
The beta of a fund is determined as follows:
The alpha of a fund is determined as follows:
This is a fund that buys common stock, preferred stock and bonds. The same as a
The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means
The beta of a stock is determined as follows:
Interest rate associated with borrowing money.
Covariance of a national economy's rate of return and the rate of return the world economy
Indicated yield represents return on a share of a mutual fund held over the past 12
Investment funds established for the support of institutions such as colleges, private
Implication of the CAPM that security risk premiums will be
Non-interest bearing deposits held in reserve for depository institutions at their district Federal
The market where banks can borrow or lend reserves, allowing banks temporarily
This is the interest rate that banks with excess reserves at a Federal Reserve district bank
A measure of foreign market risk that is derived from the capital asset pricing model.
Fed funds traded for future delivery.
The product of a statistical model to predict the fundamental risk of a security using not
Funds From Operations (FFO)
Used by real estate and other investment trusts to define the cash flow from
The beta of a leveraged required return; that is, the beta as adjusted for the degree of
mutual funds are pools of money that are managed by an investment company. They offer
Mutual fund theorem
A result associated with the CAPM, asserting that investors will choose to invest their
A system, such as the arrangement between the CME and SIMEX, which allows trading
Mutually exclusive investment decisions
Investment decisions in which the acceptance of a project
No load mutual fund
An open-end investment company, shares of which are sold without a sales charge.
Objective (mutual fund)
The fund's investment strategy category as stated in the prospectus. There are
An equation that describes the average relationship between a dependent variable and a
Cash flow available after payment of taxes in the project.
Term Fed Funds
Fed funds sold for a period of time longer than overnight.
mutual funds that do not charge an upfront or back-end commission, but instead take out up to
The beta of an unleveraged required return (i.e. no debt) on an investment when the
A portfolio constructed to represent the risk-free asset, that is, having a beta of zero.
The representation of the double-entry system of accounting such that assets are equal to liabilities plus capital.
The capital invested in a business by the shareholders, including retained profits.
The formula Assets = Liabilities + Equity.
An equation that reflects the two-sided nature of a
A measure of the riskiness of a specific security compared to the
mutually exclusive projects
a set of proposed capital projects from which one is chosen, causing all the others to be rejected
mutually inclusive projects
a set of proposed capital projects that are all related and that must all be chosen if the primary project is chosen
The price volatility of a financial instrument relative to the price
Sensitivity of a stock’s return to the return on the market
internally generated funds
Cash reinvested in the firm; depreciation plus earnings not paid out as dividends.
mutually exclusive projects
Two or more projects that cannot be pursued simultaneously.
Equation of Exchange
The quantity theory equation Mv = PQ.
Federal Funds Rate
The interest rate at which banks lend deposits at the Federal Reserve to one another overnight.
A measurement of the extent to which the returns on a given stock move with stock market.
Risk of a firm measured from the standpoint of an investor who holds a highly diversified portfolio.
Labour-Sponsored Venture Funds
Venture capital corporations established by labour unions. They function as other venture capital corporations but are subject to government regulation.
EFT (electronic funds transfer)
funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT.
mutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities.
mutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares.
mutual funds that aim to track the performance of a specific stock or bond index. This process is also referred to as indexing and passive management.
When you buy a mutual fund, you are pooling your money with that of other investors. An investment professional called a portfolio advisor takes that money and invests it for all the investors in a variety of different securities as determined by the investment objectives of the mutual fund. This gives you the benefit of diversification that is, being invested in many different investments at once.
NSF (non-sufficient funds)
This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds.
mutual funds that seek to preserve capital. This type of fund invests primarily in short-term securities with an average term to maturity of one year or less, or in the case of money market funds, 90 days or less.
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