Yield to Maturity
When applied to all of a bond's future cash flows, yield to maturity represents present value at market price.
Exponentially Weighted Moving Average
An Exponentially Weighted Moving Average shows how data averages over time as the weight of the data decreases.
Model Risk
Model risk occurs when a financial model is used to measure quantitative information such as a firm's market risks or...
Combined Ratio
The combined ratio is the summation of both the loss and expenses ratios. A company is considered distressed if it ex...
Basis Risk
Basis risk is the risk that the difference between the spot price and the futures price will be different than what i...
What is Binomial Distribution?
A binomial distribution is a statistical tool used to measure the total number of successes from n independent random...
GARCH Model
GARCH is a statistical model that can be used to analyze a number of different types of financial data, for instance,...
What are Pass-Through Securities?
Pass-through securities are one of the widely used financial instruments. Several mortgages may form the pool for a m...
What is Risk Culture? Unraveling the Essence of Organizational Decision-Making
Risk culture is an element of risk management that can’t be controlled directly because it is embedded in an organi...