Financial Terms | |
R squared (R^2) |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory control, business, payroll, tax advisor, investment, credit, finance, accounting, |
Definition of R squared (R^2)R squared (R^2)Square of the correlation coefficient proportion of the variability explained by the linear R squared (R^2)Square of the correlation coefficientthe proportion of the variability in one series that can be
Related Terms:economic components modelAbramsâ€™ model for calculating DLOM based on the interaction of discounts from four economic components. Gordon modelpresent value of a perpetuity with growth. log size modelAbramsâ€™ model to calculate discount rates as a function of the logarithm of the value of the firm. Ordinary least squares (OLS)regression analysis a statistical technique that minimizes the sum of the Squared deviations between a dependent variable and one or more independent variables and provides the user QMDM (quantitative marketability discount model)model for calculating DLOM for minority interests r the discount rate All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable Arbitrage-free option-pricing modelsYield curve option-pricing models. Asset pricing modelA model for determining the required rate of return on an asset. Asset pricing modelA model, such as the Capital Asset Pricing model (CAPM), that determines the required At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the AutocorrelationThe correlation of a variable with itself over successive time intervals. Binomial option pricing modelAn option pricing model in which the underlying asset can take on only two Black-Scholes option-pricing modelA model for pricing call options based on arbitrage arguments that uses Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Capital asset pricing model (CAPM)An economic theory that describes the relationship between risk and Coefficient of determinationA measure of the goodness of fit of the relationship between the dependent and Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Constant-growth modelAlso called the Gordon-Shapiro model, an application of the dividend discount Continuous random variableA random value that can take any fractional value within specified ranges, as CorrelationSee: correlation coefficient. Correlation coefficientA standardized statistical measure of the dependence of two random variables, DependentAcceptance of a capital budgeting project contingent on the acceptance of another project. Deterministic modelsLiability-matching models that assume that the liability payments and the asset cash Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the Discrete random variableA random variable that can take only a certain specified set of discrete possible Dividend discount model (DDM)A model for valuing the common stock of a company, based on the Dividend growth modelA model wherein dividends are assumed to be at a constant rate in perpetuity. Dow Jones industrial averageThis is the best known U.S.index of stocks. It contains 30 stocks that trade on Endogenous variableA value determined within the context of a model. European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Exogenous variableA variable whose value is determined outside the model in which it is used. Also called Extrapolative statistical modelsmodels that apply a formula to historical data and project results for a Factor modelA way of decomposing the factors that influence a security's rate of return into common and First-pass regressionA time series regression to estimate the betas of securities portfolios. Garmen-Kohlhagen option pricing modelA widely used model for pricing foreign currency options. Hot moneyMoney that moves across country borders in response to interest rate differences and that moves Independent projectA project whose acceptance or rejection is independent of the acceptance or rejection of Index modelA model of stock returns using a market index such as the S&P 500 to represent common or Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to International Monetary FundAn organization founded in 1944 to oversee exchange arrangements of International Monetary Market (IMM)A division of the CME established in 1972 for trading financial In-the-moneyA put option that has a strike price higher than the underlying futures price, or a call option Law of one priceAn economic rule stating that a given security must have the same price regardless of the Linear programmingTechnique for finding the maximum value of some equation subject to stated linear constraints. Linear regressionA statistical technique for fitting a straight line to a set of data points. Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. one of the Market modelThis relationship is sometimes called the single-index model. The market model says that the ModelingThe process of creating a depiction of reality, such as a graph, picture, or mathematical Monetary goldGold held by governmental authorities as a financial asset. Monetary policyActions taken by the Board of Governors of the Federal Reserve System to influence the Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Money baseComposed of currency and coins outside the banking system plus liabilities to the deposit money banks. Money center banksBanks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds. Money managementRelated: Investment management. Money managerRelated: Investment manager. Money marketMoney markets are for borrowing and lending money for three years or less. The securities in Money market demand accountAn account that pays interest based on short-term interest rates. Money market fundA mutual fund that invests only in short term securities, such as bankers' acceptances, Money market hedgeThe use of borrowing and lending transactions in foreign currencies to lock in the Money market notesPublicly traded issues that may be collateralized by mortgages and MBSs. Money purchase planA defined benefit contribution plan in which the participant contributes some part and Money rate of returnAnnual money return as a percentage of asset value. Money supplyM1-A: Currency plus demand deposits Multiple regressionThe estimated relationship between a dependent variable and more than one explanatory variable. New moneyIn a Treasury auction, the amount by which the par value of the securities offered exceeds that of Normal random variableA random variable that has a normal probability distribution. One man pictureThe picture quoted by a broker is said to be a one-man picture if both the bid and offered One-factor APTA special case of the arbitrage pricing theory that is derived from the one-factor model by One-way market1) A market in which only one side, the bid or asked, is quoted or firm. Other capitalIn the balance of payments, other capital is a residual category that groups all the capital Other current assetsValue of non-cash assets, including prepaid expenses and accounts receivable, due Other long term liabilitiesValue of leases, future employee benefits, deferred taxes and other obligations Other sourcesAmount of funds generated during the period from operations by sources other than Out-of-the-money optionA call option is out-of-the-money if the strike price is greater than the market price Path dependent optionAn option whose value depends on the sequence of prices of the underlying asset Phone switchingIn mutual funds, the ability to transfer shares between funds in the same family by Pie model of capital structureA model of the debt/equity ratio of the firms, graphically depicted in slices of Postponement optionThe option of postponing a project without eliminating the possibility of undertaking it. Precautionary demand (for money)The need to meet unexpected or extraordinary contingencies with a Random variableA function that assigns a real number to each and every possible outcome of a random experiment. Regression analysisA statistical technique that can be used to estimate relationships between variables. Regression equationAn equation that describes the average relationship between a dependent variable and a Regression toward the meanThe tendency for subsequent observations of a random variable to be closer to its mean. Risk proneWilling to pay money to transfer risk from others. Seasoned datingsExtended credit for customers who order goods in periods other than peak seasons. Seasoned issueIssue of a security for which there is an existing market. Related: Unseasoned issue. Seasoned new issueA new issue of stock after the company's securities have previously been issued. A Second pass regressionA cross-sectional regression of portfolio returns on betas. The estimated slope is the Series bondBond that may be issued in several series under the same indenture. SeriesOptions: All option contracts of the same class that also have the same unit of trade, expiration date, SIMEX (Singapore International Monetary Exchange)A leading futures and options exchange in Singapore. Single factor modelA model of security returns that acknowledges only one common factor. Single index modelA model of stock returns that decomposes influences on returns into a systematic factor, Simple linear regressionA regression analysis between only two variables, one dependent and the other explanatory. Simple linear trend modelAn extrapolative statistical model that asserts that earnings have a base level and Single-index modelRelated: market model Speculative demand (for money)The need for cash to take advantage of investment opportunities that may arise.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |