Financial and business terms. 2012.
Replicating portfolio — In the valuation of a life insurance company, the actuary considers a series of future uncertain cashflows (including incoming premiums and outgoing claims, for example) and attempts to put a value on these cashflows. There are many ways of… … Wikipedia
Replicating portfolio — A portfolio constructed to match an index or benchmark. The New York Times Financial Glossary … Financial and business terms
replicating portfolios — A portfolio of instruments with known rates and maturities that tends to closely duplicate the changes in a portfolio of instruments with administered rates and/or indeterminate maturities. Sometimes referred to as the Rod Jacobs method for the… … Financial and business terms
Rational pricing — is the assumption in financial economics that asset prices (and hence asset pricing models) will reflect the arbitrage free price of the asset as any deviation from this price will be arbitraged away . This assumption is useful in pricing fixed… … Wikipedia
Conditional variance swap — A conditional variance swap is a type of swap Derivative (finance) product that allows investors to take exposure to volatility in the price of an underlying security only while the underlying security is within a pre specified price range. This… … Wikipedia
Real options valuation — Real options valuation, also often termed Real options analysis,[1] (ROV or ROA) applies option valuation techniques to capital budgeting decisions.[2] A real option itself, is the right but not the obligation to undertake some business decision; … Wikipedia
tracking error — In an indexing strategy, the standard deviation of the difference between the performance of the benchmark and the replicating portfolio. Bloomberg Financial Dictionary Indicator measuring the volatility of the return on a portfolio relative to… … Financial and business terms
Variance swap — A variance swap is an over the counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e. volatility, of some underlying product, like an exchange rate, interest rate, or stock… … Wikipedia
Stratified equity indexing — A method of constructing a replicating portfolio in which the stocks in the index are classified into stratum, and each stratum is represented in the portfolio. The New York Times Financial Glossary … Financial and business terms
stratified equity indexing — A method of constructing a replicating portfolio that classifies the stocks in the index into strata, and represents each stratum in the portfolio. Bloomberg Financial Dictionary … Financial and business terms
