Zulema There are many different time periods that investors can choose to focus on when considering their investment returns. Some common time periods include daily, weekly, monthly, quarterly, annually, and over the life of an investment. One way to compare investment returns across different time periods is to annualize them. This simply means converting the return … Read more
An equity derivative is a financial derivative whose value is based on one or more underlying equity securities. Common types of equity derivatives include stock options, stock futures, and equity swaps. Equity derivatives can be used for a variety of purposes, including hedging, speculation, and arbitrage. For example, a stock option allows the holder to … Read more
How It Works and Examples. National income accounting is a method used by economists to track the production and distribution of income within a nation. It provides information on the overall level of economic activity and how that activity is divided among different sectors of the economy. National income accounting can be used to measure … Read more
The distress cost is the expected cost to a firm of bankruptcy, including the costs of reorganization, liquidation, and other ancillary costs. The distress cost is typically estimated as a function of the firm’s assets, liabilities, and other characteristics. The distress cost is an important consideration in corporate finance because it can have a significant … Read more
S. Dollar/Canadian Dollar). The USD/CAD (U.S. Dollar/Canadian Dollar) is a currency pair that represents the value of the United States dollar (USD) against the Canadian dollar (CAD). The USD/CAD is one of the most traded currency pairs in the world, and is considered to be a relatively stable pair. The USD/CAD is usually affected by … Read more
