Search results for
Risk-Adjusted Return On Capital (RAROC)
Risk-adjusted return on capital (RAROC) is a modification to the standard return on an investment that accounts for the element of risk.
Absolute Return Index Definition
The absolute return index is used to compare the absolute returns posted by the hedge fund market, as a whole, against individual hedge funds.
Negative Return Definition
Negative return is characterized by a company's experience of financial loss or an investor's loss on the value of their securities.
Is there a positive correlation between risk and return?
A lower risk investment has lower potential for profit. A higher risk investment has a higher potential for profit but also a potential for a greater loss.
Investment Center Definition
An investment center is a business unit that can utilize capital to contribute directly to a company's profitability.
Return On Assets Managed (ROAM) Defined
Return on assets managed or ROAM is a measurement of profits shown as a percentage of the capital that is handled. Return on assets managed is calculated by taking operating profits and dividing it by assets, which could include accounts receivable and inventory.
Foreign Portfolio Investment (FPI) Definition
Foreign portfolio investment (FPI) is securities and other assets passively held by foreign investors, allowing individuals to invest overseas.
Return on Gross Invested Capital (ROGIC)
A true reflection on amount a company earns factoring all invested capital, plus total gross debts the company has accumulated before making payments.
Certificate in Investment Performance Measurement (CIPM) Definition
The Certificate in Investment Performance Measurement (CIPM) signifies competency in the evaluation of investment performance figures.
Fine Art Can Be A Fine Investment
Understand how to identify Michelangelo from macaroni art before you make an investment in the fine arts. Rarity is important to the process.