Search results

Tier 1 capital is the core measure of a bank’s financial strength from a regulator’s point of view. It is composed of core capital, which ... more

For periodic compounding, the exact doubling time for an interest rate of r per period is a logarithmic formula, that can be used if we want to know the ... more

The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the ... more

Security market line (SML) is the representation of the capital asset pricing model. It displays the expected rate of return of ... more

n finance, leverage is a general term for any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed ... more

In finance, return is a profit on an investment. return is also used to refer to a profit on an investment, expressed as a proportion of the amount ... 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

The Black–Scholes /ˌblæk ˈʃoʊlz/ or Black–Scholes–Merton model is a mathematical model of a financial market containing derivative investment instruments. ... 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

Tier 2 capital, or supplementary capital, include a number of important and legitimate constituents of a bank’s capital base. (Undisclosed Reserves ... more