Home Wikituition Browse all terms Categories
Random term

Risk & Portfolio Management

3 terms

A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Filtering by: Risk & Portfolio Management Starts with B Clear all
Risk & Portfolio Management

Benchmark

The index or standard against which a portfolio's performance is measured.

Excess Return = Portfolio Return - Benchmark Return over the same period % Risk & Portfolio Management

Beta

A measure of how much an asset's return moves relative to the market's, on average.

Beta = Covariance of Asset and Market Returns / Variance of Market Returns ratio (x, times) Risk & Portfolio Management

Black Swan

An event that is unpredicted, has extreme impact, and is rationalised as predictable only after it occurs.

Test: the event lay outside expectations, carried extreme consequences, and attracted retrospective explanation qualitative