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Financial Terms | |
Ex post return |
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Definition of Ex post returnEx post returnRelated: Holding period return
Related Terms:Abnormal returnsPart of the return that is not due to systematic influences (market wide influences). In Absolute Right of ReturnGoods may be returned to the seller by the purchaser without restrictions. Accounting exposureThe change in the value of a firm's foreign currency denominated accounts due to a Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow Accrued expenses payableexpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- ![]() After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Aggregate Expenditure CurveAggregate demand for goods and services drawn as a function of the level of national income. American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades Annual fund operating expensesFor investment companies, the management fee and "other expenses," annual returnThe fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns. Annualized holding period returnThe annual rate of return that when compounded t times, would have Arithmetic average (mean) rate of returnArithmetic mean return. Arithmetic mean returnAn average of the subperiod returns, calculated by summing the subperiod returns Arms indexAlso known as a trading index (TRIN)= (number of advancing issues)/ (number of declining Autonomous ExpenditureElements of spending that do not vary systematically with variables such as GDP that are explained by the theory. See also exogenous expenditure. Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Balance sheet exposureSee:accounting exposure. Biased expectations theoriesRelated: pure expectations theory. Bill of exchangeGeneral term for a document demanding payment. Bond indexingDesigning a portfolio so that its performance will match the performance of some bond index. book rate of returnAccounting income divided by book value. Book ReturnsBook yield is the investment income earned in a year on a portfolio of assets purchased over a number of years and at different interest rates, divided by the book value of those assets. Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. Buying the indexPurchasing the stocks in the S&P 500 in the same proportion as the index to achieve the Capital expendituresAmount used during a particular period to acquire or improve long-term assets such as capital expendituresRefers to investments by a business in long-term CAPITAL IN EXCESS OF PAR VALUEWhat a company collected when it sold stock for more than the par value per share. Capital in excess parAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with additional paid-in capital. Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Capitalized Expendituresexpenditures that are accounted for as assets to be amortized CARs (cumulative abnormal returns)a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock. Chicago Mercantile Exchange (CME)A not-for-profit corporation owned by its members. Its primary Commodities Exchange Center (CEC)The location of five New York futures exchanges: Commodity Consumer Price Index (CPI)The CPI, as it is called, measures the prices of consumer goods and services and is a Consumer Price Index (CPI)An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to measure inflation. Convertible exchangeable preferred stockConvertible preferred stock that may be exchanged, at the ConvexBowed, as in the shape of a curve. Usually referring to the price/required yield relationship for ConvexityA measure of the rate of change in duration; measured in time. Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Cumulative abnormal return (CAR)Sum of the differences between the expected return on a stock and the Current Income Tax ExpenseThat portion of the total income tax provision that is based on Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. Dollar returnThe return realized on a portfolio for any evaluation period, including (1) the change in market Dollar-weighted rate of returnAlso called the internal rate of return, the interest rate that will make the EAFE indexThe European, Australian, and Far East stock index, computed by Morgan Stanley. Economic exposureThe extent to which the value of the firm will change because of an exchange rate change. Effective convexityThe convexity of a bond calculated with cash flows that change with yields. Effective Exchange RateThe weighted average of several exchange rates, where the weights are determined by the extent of our trade done with each country. Enhanced indexingAlso called indexing plus, an indexing strategy whose objective is to exceed or replicate Equation of ExchangeThe quantity theory equation Mv = PQ. Ex-dividendThis literally means "without dividend." The buyer of shares when they are quoted ex-dividend Ex-dividend dateThe first day of trading when the seller, rather than the buyer, of a stock will be entitled to ex-dividend dateDate that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend. Ex-rightsIn connection with a rights offering, shares of stock that are trading without the rights attached. Ex-rights dateThe date on which a share of common stock begins trading ex-rights. Exact matchingA bond portfolio management strategy that involves finding the lowest cost portfolio Exante returnThe expected return of a portfolio based on the expected returns of its component assets and Except for opinionAn auditor's opinion reflecting the fact that the auditor was unable to audit certain areas Excess CapacityUnused production capacity. Excess DemandA situation in which demand exceeds supply. Excess reservesAny excess of actual reserves above required reserves. Excess ReservesReserves of commercial banks in excess of those they are legally required to hold. Excess return on the market portfolioThe difference between the return on the market portfolio and the Excess returnsAlso called abnormal returns, returns in excess of those required by some asset pricing model. Excess SupplyA situation in which supply exceeds demand. ExchangeThe marketplace in which shares, options and futures on stocks, bonds, commodities and indices Exchange controlsGovernmental restrictions on the purchase of foreign currencies by domestic citizens or Exchange of assetsAcquisition of another company by purchase of its assets in exchange for cash or stock. Exchange of stockAcquisition of another company by purchase of its stock in exchange for cash or shares. Exchange offerAn offer by the firm to give one security, such as a bond or preferred stock, in exchange for Exchange rateThe price of one country's currency expressed in another country's currency. exchange rateAmount of one currency needed to purchase one unit of another. Exchange Rate Mechanism (ERM)The methodology by which members of the EMS maintain their Exchange Rate, NominalThe price of one currency in terms of another, in this book defined as number of units of foreign currency per dollar. Exchange Rate, RealThe nominal exchange rate corrected for price level differences. Exchange rate riskAlso called currency risk, the risk of an investment's value changing because of currency Exchange riskThe variability of a firm's value that results from unexpected exchange rate changes or the Exchangeable SecuritySecurity that grants the security holder the right to exchange the security for the ExclusionA specific condition or circumstance listed in the policy that are not covered by the policy Exclusionary self-tenderThe firm makes a tender offer for a given amount of its own stock while excluding ExecutionThe process of completing an order to buy or sell securities. Once a trade is executed, it is reported Execution costsThe difference between the execution price of a security and the price that would have Exempt securitiesInstruments exempt from the registration requirements of the Securities Act of 1933 or the ExerciseTo implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of Exercise priceThe price at which the underlying future or options contract may be bought or sold. Exercise priceThe price set for buying an asset (call) or selling an asset (put). Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Exercising the optionThe act buying or selling the underlying asset via the option contract. Exit OptionsA variety of options available to an investor to recover their invested capital and the return on their investment. Exit valueThe value that an asset is expected to have at the time it is sold at a predetermined ExogenousAn adjective indicating that something is determined by forces unrelated to the theory determining the variables under investigation. Exogenous ExpenditureSee autonomous expenditure. Exogenous variableA variable whose value is determined outside the model in which it is used. Also called expatriatea parent company or third-country national assigned Expectations hypothesis theoriesTheories of the term structure of interest rates which include the pure Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |