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Standard & Poorâ€™s Composite Index |
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Definition of Standard & Poorâ€™s Composite IndexStandard & Poorâ€™s Composite Indexindex of the investment performance of a portfolio of 500 large stocks. Also called the
Related Terms:Arms indexAlso known as a trading index (TRIN)= (number of advancing issues)/ (number of declining Bond indexingDesigning a portfolio so that its performance will match the performance of some bond index. Buying the indexPurchasing the stocks in the S&P 500 in the same proportion as the index to achieve the Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance Presentation standards Implementation Consumer Price Index (CPI)The CPI, as it is called, measures the prices of consumer goods and services and is a EAFE indexThe European, Australian, and Far East stock index, computed by Morgan Stanley. Enhanced indexingAlso called indexing plus, an indexing strategy whose objective is to exceed or replicate Gold exchange standardA system of fixing exchange rates adopted in the Bretton Woods agreement. It Gold standardAn international monetary system in which currencies are defined in terms of their gold Index and Option Market (IOM)A division of the CME established in 1982 for trading stock index Index arbitrageAn investment/trading strategy that exploits divergences between actual and theoretical Index fundInvestment fund designed to match the returns on a stockmarket index. Index modelA model of stock returns using a market index such as the S&P 500 to represent common or Index optionA call or put option based on a stock market index. Index warrantA stock index option issued by either a corporate or sovereign entity as part of a security Indexed bondBond whose payments are linked to an index, e.g. the consumer price index. IndexingA passive instrument strategy consisting of the construction of a portfolio of stocks designed to Jensen indexAn index that uses the capital asset pricing model to determine whether a money manager Market value-weighted indexAn index of a group of securities computed by calculating a weighted average Optimization approach to indexingAn approach to indexing which seeks to Optimize some objective, such Profitability indexThe present value of the future cash flows divided by the initial investment. Also called Pure index fundA portfolio that is managed so as to perfectly replicate the performance of the market portfolio. Risk indexesCategories of risk used to calculate fundamental beta, including (1) market variability, (2) Single index modelA model of stock returns that decomposes influences on returns into a systematic factor, Single-index modelRelated: market model Standard deviationThe square root of the variance. A measure of dispersion of a set of data from their mean. Standard errorIn statistics, a measure of the possible error in an estimate. Standardized normal distributionA normal distribution with a mean of 0 and a standard deviation of 1. Standardized valueAlso called the normal deviate, the distance of one data point from the mean, divided by Statement of Financial Accounting Standards No. 8This is a currency translation standard previously in Statement of Financial Accounting Standards No. 52This is the currency translation standard currently Stock index optionAn option in which the underlying is a common stock index. Stratified equity indexingA method of constructing a replicating portfolio in which the stocks in the index Stratified sampling approach to indexingAn approach in which the index is divided into cells, each Stratified sampling bond indexingA method of bond indexing that divides the index into cells, each cell Strike indexFor a stock index option, the index value at which the buyer of the option can buy or sell the Treynor IndexA measure of the excess return per unit of risk, where excess return is defined as the Profitability indexSee cash value added. Standard costsA budget cost for materials and labour used for decision-making, usually expressed as a per unit cost that is applied to standard quantities from a bill of materials and to standard times from a Profitability IndexA method for determining the profitability of an investment. It is Standard DeviationA statistical term that measures the dispersion of a variable Cost Accounting Standards Board (CASB)a body established by Congress in 1970 to promulgate cost accounting ethical standarda standard representing beliefs about moral expected standardstandard set at a level that reflects what ideal standarda standard that provides for no inefficiencies perfection standardsee ideal standard practical standarda standard that can be reached or slightly present value indexsee profitability index profitability index (Pl)a ratio that compares the present value of net cash flows to the present value of the net investment standarda model or budget against which actual results are standard costa budgeted or estimated cost to manufacture standard cost carda document that summarizes the direct standard cost systema valuation method that uses predetermined standard deviationthe measure of variability of data around standard error of the estimatea measure of dispersion that reflects the average difference between actual observations and expected results provided by a regression line standard overhead application ratea predetermined overhead rate used in a standard cost system; it can be a separate variable or fixed rate or a combined overhead rate standard quantity allowedthe quantity of input (in hours or some other cost driver measurement) required at standard for the output actually achieved for the period Standard deviationA measure of the variation in a distribution, equal to the Standard costA predetermined cost that is based on original engineering designs and market indexMeasure of the investment performance of the overall market. profitability indexRatio of net present value to initial investment. standard deviationSquare root of variance. Another measure of volatility. 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. Gold StandardA fixed exchange rate system in which a currency is directly convertible into gold. IndexA series of numbers measuring percentage changes over time from a base period. The index number for the base period is by convention set equal to 100. Price IndexA measure of the price level calculated by comparing the cost of a bundle of goods and services in a given year with its cost in a base year. See also index. Contract Work Hours and Safety Standards ActA federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. Fair Labor Standards Act of 1938A federal Act creating standards of overtime Part standardizationThe planned reduction of similar parts through the standardization Standard containersCommon-sized containers that are used to efficiently move, indexAn index is a statistical measure of a market based on the performance of a sample of securities in that market. For example, the S&P/TSX composite index reflects the performance of the most actively traded stocks on The Toronto Stock Exchange. index fundsMutual 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. Index Portfolio Rebalancing Service (IPRS)index Portfolio Rebalancing Service (IPRS) is a comprehensive investment service that can help increase potential returns while reducing volatility. Several portfolios are available, each with its own strategic balance of index Funds. IPRS maintains your personal asset allocation by monitoring and rebalancing your portfolio semi-annually. IndexationThe adjustment of benefits to compensate for the effects of inflation. market portfolioPortfolio of all assets in the economy. In practice a broad stock market index, such as the standard & poor's composite, is used to represent the market.
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