Definition of ‘Risk Management’ The process of identification, analysis and either acceptance or mitigation of uncertainty in investment decision-making. Essentially, risk management […]

Definition of ‘Average Return’ The simple mathematical average of a series of returns generated over a period of time. An average return […]

Definition of ‘Historical Returns’ The past performance of a security or index. Analysts review historical return data when trying to predict future […]

Definition of ‘Standard Deviation’ 1. A measure of the dispersion of a set of data from its mean. The more spread apart […]

Definition of ‘Return’ The gain or loss of a security in a particular period. The return consists of the income and the […]

Definition of ‘Investment’ An asset or item that is purchased with the hope that it will generate income or appreciate in the […]

Definition of ‘Forecasting’ The use of historic data to determine the direction of future trends. Forecasting is used by companies to determine […]

Definition of ‘Capital Structure’ A mix of a company’s long-term debt, specific short-term debt, common equity and preferred equity. The capital structure […]

Definition of ‘Liquidity’ 1. The degree to which an asset or security can be bought or sold in the market without affecting […]

The chance that an investment‘s actual return will be different than expected. Risk includes the possibility of losing some or all of […]