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Ordinary least squares regression of Okun's law.Since the regression line does not miss any of the points by very much, the R 2 of the regression is relatively high.. In statistics, the coefficient of determination, denoted R 2 or r 2 and pronounced "R squared", is the proportion of the variation in the dependent variable that is predictable from the independent variable(s).
In statistics, the reduced chi-square statistic is used extensively in goodness of fit testing. It is also known as mean squared weighted deviation (MSWD) in isotopic dating [1] and variance of unit weight in the context of weighted least squares. [2] [3]
The wider the swings in an investment's price, the harder emotionally it is to not worry; Price volatility of a trading instrument can help to determine position sizing in a portfolio; When cash flows from selling a security are needed at a specific future date to meet a known fixed liability, higher volatility means a greater chance of a ...
Returns are low, meaning you could earn more by investing (but there’s no guarantee you will.) Because returns are low, you may lose purchasing power over time, as inflation eats away at your ...
Myth #2: "You need years of experience before starting to invest" Modern investment platforms have transformed buying assets into a straightforward process that doesn't require an economics degree ...
Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.An alpha of 1% means the investment's return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market.
Buffett, and other investment professionals, prefer these low-risk investments. Bank of America, Buffett’s second-largest holding , trades at a forward price-to-earnings ratio of roughly 13%, as ...
β i (R M,t – R f) is a nondiversifiable or systematic risk ε i,t is the non-systematic or diversifiable, non-market or idiosyncratic risk R M,t is the return to market portfolio R f is a risk-free rate