Mutual Fund Glossary Of Terms

cheap moncler outlet American Depositary Receipt (ADR): Shares of non US buy moncler jackets companies traded in American stock exchanges in US dollars. ADRs work like any other share that we know of. They are negotiable receipts held in a US bank representing a specific number of actual shares (called ADS). For the American public ADRs simplify investing. So when Americans purchased Infosys stocks listed on Nasdaq, they could do so directly in dollars, without converting them from rupees. Such companies are required to produce financial results according to a standard accounting principle, thus, making their earnings more transparent. An American investor holding an ADR does not have voting rights in the company. cheap moncler outlet

moncler sale Duration: Average duration provides a measure of a fund’s interest rate sensitivity the longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. The relationship between funds with different durations is straightforward: A fund with a duration of 10 years is twice as volatile as a fund with a five year duration. Duration also gives an indication of how a fund’s NAV will change as interest rates change. A fund with a five year duration would be expected to lose 5% from its NAV if interest rates rose by one percentage point or gain 5% if interest rates fell by one percentage point. moncler sale

moncler jackets outlet Investment yield: The annual percentage return which is considered to be for a specific valuation in an investment being expressed as the ratio of annual net income (actual or estimated) to the capital value. It is therefore a measure of an investor’s opinion about the prospects and risks attached to that investment. The better the prospects and lower the risks, the lower the expected yield and thus the greater the capital value. The required yield from an investment is estimated in the light of such factors as: moncler jackets outlet

cheap moncler coats Price/Book Ratio: The price/book (P/B) ratio of a fund is the weighted average of the price/book ratios of all the stocks in Moncler Outlet a fund’s portfolio. Book value is the total assets of a company, less total liabilities (sometimes referred to as carrying value). A company’s book value is calculated by dividing the market price of its outstanding stock by the company’s book value, and then adjusting for the number of shares outstanding. (Stocks with negative book values are excluded from this calculation.) cheap moncler coats

cheap moncler Alpha: Alpha measures the difference between a fund’s actual returns and its expected performance, given its level of risk (as measured by beta). A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates a fund has underperformed, given the expectations established by the fund’s beta. Some investors see alpha as a measurement of the value added or subtracted by a fund’s manager. There are limitations to alpha’s ability to accurately depict a manager’s added or cheap moncler subtracted value. In some cases, a negative alpha can result from the expenses that are present in the fund figures but are not present in the figures of the comparison index. Alpha is dependent on the accuracy of beta: If the investor accepts beta as a moncler outlet store conclusive definition of risk, a positive alpha would be a conclusive indicator of good fund performance. moncler outlet sale Of course, the value of beta is dependent on cheap moncler outlet another statistic, known as R squared. cheap moncler

moncler outlet Bond Rating: A system of evaluating the probability of whether a bond issuer will default. Standard and Poor’s Corp. and Moody’s Investors Services, among other firms, analyze the financial stability of both corporate and government bond issuers. Ratings range from AAA or Aaa (extremely unlikely to default) to D (currently in default). Bonds rated BBB or below by S or Baa or below by monlcer down jackets Moody’s are not considered to be of investment grade. Mutual funds generally restrict their bond purchases to moncler mens jackets issues of certain quality ratings, which are specified in their prospectuses. moncler outlet

moncler outlet jackets Interest Rate Sensitivity: Interest rate sensitivity, measured by the average effective duration the longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. The relationship between funds with different durations is straightforward: A fund with a duration of 10 years is twice as volatile as a fund with a five year duration. Duration also gives an indication of how a fund’s NAV will change as interest rates change. A fund with a five year duration would be expected to lose 5% from its NAV if interest rates rose by one percentage point or gain 5% if interest rates fell by one percentage point. moncler outlet jackets

moncler outlet uk R Squared: R squared ranges from 0 to 100 and reflects the percentage of a fund’s movements that are explained by movements in its benchmark index. An R squared of 100 means that all movements of a fund are completely explained by movements in the index. Thus, index funds that invest only in S 500 stocks will have an R squared very close to 100. Conversely, a low R squared indicates that very few of the fund’s moncler outlet online movements are explained by movements in its benchmark index. An R squared measure of cheap moncler jackets 35, for example, means that only 35% of the fund’s movements can be explained by movements in its benchmark index. Therefore, R squared can be used to ascertain the significance of a particular beta or alpha. Generally, a higher R squared will indicate a more useful beta figure. If the R squared is lower, then the beta is less relevant to the fund’s performance. moncler outlet uk

moncler https://www.beautylyrics.com outlet online Sharpe Ratio: The Sharpe ratio, provided by Lipper, is based on a risk adjusted measure developed by Nobel Laureate William Sharpe. It is calculated using standard deviation and excess return to determine reward per unit of risk. First, the average monthly return of the 90 day Treasury bill (over a 36 month period) is subtracted moncler outlet from the fund’s average monthly return. The difference in total return represents the fund’s excess return beyond that of the 90 day Treasury bill, a risk free investment. An arithmetic annualized excess return is then calculated by multiplying this monthly return by 12. To show a relationship between excess return and risk, this number is then divided by the standard deviation of the fund’s annualized excess returns. The higher the Sharpe ratio, the better the fund’s historical risk adjusted performance. moncler outlet online

moncler outlet store Standard Deviation: Standard deviation is a statistical measure of the range of a fund’s performance. When a fund has moncler sale outlet a moncler sale high standard deviation, its cheap moncler coats range of performance has been very wide, indicating that there is a greater potential for volatility. The standard deviation figure provided here is an annualized statistic based on 36 monthly returns. By definition, approximately 68% of the time, the total returns of any given fund are expected to differ from its mean total return by no more than plus or minus the standard deviation figure. Ninety five percent of the time, a fund’s total returns should be within a range of plus or minus two times the standard deviation from its mean. These ranges assume that a fund’s returns fall in a typical bell shaped distribution. In any case, the greater the standard deviation, the greater the fund’s volatility moncler outlet store.