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7 Cards in this Set
- Front
- Back
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What is a market index? |
A market index is an aggregate value produced by combining several stocks or other investment vehicles together and expressing their total values against a base value from a specific date. Market indexes are intended to represent an entire stock market and thus track the market's changes over time. |
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What is float? |
Float may also refer to the total number of shares available for trading. Float is calculated by subtracting closely-held shares from the total number of outstanding shares. |
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What is portfolio turnover? |
Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers. |
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What is Cash Drag |
Cash drag is a term associated with exchange trade funds (ETFs), referring to the delay between when an ETF receives a dividend and when it uses the proceeds. |
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What is contrarian investment strategy? |
Contrarian Investing is an investment strategy that is characterized by purchasing and selling in contrast to the prevailing sentiment of the time. A contrarian believes that certain crowd behavior among investors can lead to exploitable mispricings in securities markets. |
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What is alpha? |
Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index used as a benchmark, since they are often considered to represent the market's movement as a whole. The excess returns of a fund relative to the return of a benchmark index is the fund's alpha. |
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What is portable alpha? |
Portable alpha is the return of an investment portfolio with zero market risk (beta). Being independent of both the direction and the magnitude of the market's movements, it represents the manager's skill in selecting investments. |
