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Interest Rate Parity
Interest rate parity is a term that becomes applicable whenever we talk about investing in securities or other assets in different countries.
What is Linear Regression?
Linear regression is one type of regression that assumes a linear relationship between a variable (X) and a dependent variable (Y).
How are shares treated in the accounting records?
All of those scenarios result in accounting entries made in the financial records of companies that issue the shares and those that buy the shares.
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What are Options?
In options trading, the buyer is given the right but not the obligation to buy (sell) an asset against the pre-specified price.
Spot Rates
What is Spot Rates? When a lump sum of money is received only once in the future, the spot rate is the interest rate that is earned.
Best Linear Unbiased Estimator
If the variables are normally distributed, OLS is the best linear unbiased estimator under certain assumptions.
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Risk Mapping
Risk mapping visualise specific risks a company faces. It assists companies in identifying and prioritising their business risks.
Delving into the Capital Market Line in Finance
Capital Market Line was developed in the 1960s. It is a graphical representation of all portfolios that combine risk & return.
What is Normal Distribution in Financial Markets
The normal distribution is a continuous probability distribution that is symmetrical around its mean. In risk management, it is most widely employed.
What is Correlation?
Correlation measures the strength of the linear relationship between two variables and is always between -1 & 1
What does Volatility Mean?
Volatility is a statistical measure of a security’s or market index’s return dispersion. The more the volatility, the riskier the security
Treynor Ratio
The Treynor Ratio is a performance indicator that shows how much excess return a portfolio created for each unit of risk it took on.