Blog Category: Financial Terms
Get definitions and guidance on all the terms you need to know within accountancy and finance.
What is the Central Limit Theorem?
Central limit theorem states that independent random variables tend to sum to one. The mean tends to cluster around a...
Economic Capital
The economic capital gives the company the ability to absorb potential losses so that it can continue operate during ...
What is Cyber Resilience?
Cyber resilience is just one aspect of resilience in general. An organization should aim to be resilient against all ...
Long Term Capital Management
Long-Term Capital Management L.P. was a hedge fund that used absolute-return trading tactics in derivatives with subs...
Cox Ingersoll Ross
Cox-Ingersoll-Ross (CIR) model incorporates the basis point volatility increases proportionally to the square root of...
What is T-Distribution?
The t-distribution is closely related to the normal, but it has heavier tails. The t distribution was developed for t...
What is Credit Risk?
Credit risk refers to a loss suffered by a party whereby the counterparty fails to meet its contractual obligations
Trend Models
A linear temporal trend is a series that tends to change by the same amount each period. Linear time trend models ben...
What is Corporate Culture?
Corporate culture results from common values, fundamental assumptions, beliefs, behaviours, and past business decisions
Cumulative Density Function
The CDF of a variable X, also known as the X distribution function, represents likelihood that X will have a value le...