What is Covariance?
Covariance is a measure of dispersion that captures how the variables move together.
Definition of Risk with Examples
Risk is the uncertainty surrounding outcomes. We may also refer it as ‘volatility’ around outcomes.
Syndication in Finance
A syndicate is a temporary alliance of businesses coming together to manage a large transaction.
Modern Portfolio Theory
The modern portfolio theory is a pragmatic approach for choosing investments so as to maximise their overall returns ...
Collateralized Debt Obligation with Example
Collateralized Debt Obligation (CDO) is a structured product that banks can use to unburden themselves of credit risk.
Lehman Brothers Crisis
Lehman Brothers was an investment bank founded in 1850, was highly active in sourcing debts, repackaging them as secu...
Sharpe Ratio is used for portfolio management. It tells how much extra profit you get in exchange for the increased v...
What is Beta in Finance?
Beta is a measure of volatility compared to a benchmark index like the S& P 500. It is also primarily used in the cap...
What is Probability?
Probability is the likelihood of occurring an event. In probability, we study the chance of a random event occurring....
Variance is a measure of variability. It tells you the degree of spread in your data set. The more spread the data, t...