- Industria: Financial services
- Number of terms: 73910
- Number of blossaries: 1
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The return one can expect to earn on an investment. See: Capital asset pricing model.
Industry:Financial services
A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. Given the risk of the division's business line would have. If investors would usually require 14% on capital invested, the division destroyed shareholder value by the EVA metric. This description is trade marketed by Stern-Stewart.
Industry:Financial services
The exchange rate between two currencies that is anticipated to prevail in the spot market on a given future date. It differs from the current spot rate primarily by the extent to which inflation expectations in the two currencies differ.
Industry:Financial services
The study of the economy. See also: Macroeconomics; microeconomics; Keynesian economics, monetarism, and supply-side economics.
Industry:Financial services
The weighted average of a probability distribution. Also known as the mean value.
Industry:Financial services
The decrease in the marginal cost of production as a firm's extent of operations expands.
Industry:Financial services
The expected value if the future uncertain outcomes could be known minus the expected value with no additional information.
Industry:Financial services
The percentage of the assets that are spent to run a mutual fund (as of the last annual statement). This includes expenses such as management and advisory fees, overhead costs, and 12b-1 (distribution and advertising) fees. The expense ratio does not include brokerage costs for trading the portfolio, although these are reported as a percentage of assets to the SEC by the funds in a Statement of Additional Information (SAI). The SAI is available to shareholders on request. Neither the expense ratio nor the SAI includes the transactions costs of spreads, normally incurred in unlisted securities and foreign stocks. These two costs can add significantly to the reported expenses of a fund. The expense ratio is often termed an Operating Expense Ratio (OER).
Industry:Financial services
Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately.
Industry:Financial services
Charged to an expense account, fully reducing reported profit of that year, as is appropriate for expenditures for items with useful lives under one year.
Industry:Financial services
