Deciphering the F-distribution in Financial Analysis
F-distributions arise frequently as null distributions of test statistics, most notably in the analysis of variance.
What is Net Asset Value?
The Net Asset Value is calculated by adding all assets, subtracting all liabilities, and dividing them by shares outs...
Cluster Analysis
Cluster Analysis helps risk managers in identifying different groups (clusters) in a given portfolio data.
Risk Management Process with Examples
Risk management includes the sequence of activities to reduce or eliminate an entity’s potential risk. Read below &...
Put-Call Parity
Put-call parity allows investors and risk managers to calculate the price of either put or call if the value of anyon...
Short Selling
Short selling is when an investor borrows a security and sells it on the open market, intending to repurchase it for ...
What is Securitization?
Securitization is the procedure where an issuer designs a marketable financial instrument by merging or pooling vario...
Euler’s Theorem
The generalization of Fermat's theorem is known as Euler's theorem.
Systemic Risk
Systemic risk refers to the potential risk of a collapse of the entire financial system due to one factor or a combin...