Dictionary • Mar 8, 2023 Sharpe Ratio The Sharpe ratio is a financial ratio that measures the risk-adjusted return of an investment or a portfolio. It was developed by Nobel laureate William F. Sharpe.
Dictionary • Mar 8, 2023 Capital Allocation Line (CAL line) The Capital Allocation Line (CAL) is a straight line that represents the trade-off between expected return and risk for a portfolio that consists of a risk-free asset and a risky portfolio.
Dictionary • Mar 8, 2023 Efficient Frontier The Efficient Frontier is a graph that represents the set of all possible portfolios that can be constructed from a given set of assets.
Dictionary • Mar 6, 2023 Capital allocation across risky and risk-free portfolios Capital allocation across risky and risk-free portfolios involves determining the optimal allocation of an investor's capital between a portfolio of risky assets and a risk-free asset .
Dictionary • Mar 6, 2023 Utility Score and Risk Aversion Utility score of a portfolio is a measure of the overall satisfaction or happiness that an investor derives from the portfolio's performance, taking into account the investor's risk aversion and preferences.
Dictionary • Mar 5, 2023 Liquidity Liquidity refers to a company's ability to meet its financial obligations as they come due.
Dictionary • Mar 5, 2023 Capital Expenditure or CAPEX Capital expenditures refer to funds that a company uses to acquire, maintain or upgrade physical assets, such as property, plant, and equipment.