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The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy. It is a modification of the Sharpe ratio but penalizes ... more

In finance, active return refers to that segment of the returns in an investment portfolio that is due to active management decisions made by the portfolio ... more

A perpetuity is payments of a set amount of money that occur on a routine basis and continues forever. Present value of a perpetuity is an infinite and ... more

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. ... more

Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that ... more

Envy ratio in finance is the ratio of the price paid by investors to that paid by the management team for their respective shares of the equity. This ... more

Rule of 72 is a method for estimating an investment’s doubling time. The rule number 72 is divided by the interest percentage per period to obtain ... more