Search results
Results from the WOW.Com Content Network
In statistics, economics,and finance, an index is a statistical measure of change in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices track economic health from different perspectives.
Negative cashflows are treated as contributions. On the first period, a $100 call in the fund is matched by a $100 investment into the index. On the second period, the $100 index investment is now worth $105, to which is added $50 of new investment. A positive cashflow is treated by decreasing the index investment by the same value.
An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance ("track") of a specified basket of underlying investments. [1] While index providers often emphasize that they are for-profit organizations, index providers have the ability to act as ...
A 2014 academic paper suggested that, because index fund investors are likely to own all the major competitors in a given industry (because all are in the S&P 500), aggressive competing by one ...
Although this cost structure seems unrepresentative of real life transaction costs, it can be used to find approximate solutions in cases with additional assets, [11] for example individual stocks, where it becomes difficult or intractable to give exact solutions for the problem. The assumption of constant investment opportunities can be relaxed.
Fixed-income investments pay interest on a regular, predictable schedule, returning principal as well upon maturity. But fixed-income investing is a much broader topic. While investing in fixed ...
Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project.It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.
This results in the "bums" problem, in which less creditworthy issuers with a lot of outstanding debt constitute a larger part of the index than more creditworthy ones with less debt. [5] Quality of price data: the market price used for each bond in the index may be based on actual transactions, a brokerage firm's estimate or a computer model.