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Factor investing is an investment approach that involves targeting quantifiable firm characteristics or "factors" that can explain differences in stock returns. Security characteristics that may be included in a factor-based approach include size, low-volatility , value , momentum , asset growth, profitability, leverage, term and carry.
In finance, risk factors are the building blocks of investing, that help explain the systematic returns in equity market, and the possibility of losing money in investments or business adventures. [ 1 ] [ 2 ] A risk factor is a concept in finance theory such as the capital asset pricing model , arbitrage pricing theory and other theories that ...
Investment decisions are made by investors and investment managers. These decision are made based on the finding of analysis tools based on data available about the companies. [1] Investors commonly perform investment analysis by making use of fundamental analysis, technical analysis and gut feel. Investment decisions are often supported by ...
In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects. [1]
Look for properties located in high-demand areas with strong economic indicators, such as population growth, job opportunities, the presence of universities or business districts, and cities that ...
The Peren–Clement index is a method of country-specific risk analysis for businesses engaged in international trade and direct investment. [1] [2] [3] This instrument provides a guideline when deciding which foreign markets offer the possibility of additional business engagement and investment and the extent of an existing engagement or investment can be increased or should be reduced.
Performance attribution, or investment performance attribution is a set of techniques that performance analysts use to explain why a portfolio's performance differed from the benchmark. This difference between the portfolio return and the benchmark return is known as the active return .
Macro risk can also refer to types of economic factors which influence the volatility over time of investments, assets, portfolios, and the intrinsic value of companies. Macro risk associated with stocks, funds, and portfolios is usually of concern to financial planners, securities traders, and investors with longer time horizons.