SCENARIO ANALYSIS
Scenario Analysis is the method of estimation to be used on a portfolio’s expected value after a designated amount of time taking into account the particular changes in the values of securities in the portfolio and other essential factors that might in any way alter the values of the security like interest rate fluctuations. Scenario analysis most aims at estimating how much the value of a portfolio would decline to in the event of an adverse situation or the ‘worst case scenario’. Computation of various reinvestment rates invested during the investment horizon for their expected returns.
POPULAR TERMS
Maximum Loan-to-Value Ratio
Maximum allowable ratio of a loan’s size to the property’s value that is securing the loan. Lenders measure the risk using loan-to-valu ...
Cash Return on Assets Ratio
Ratio used to differentiate a business’ performance against other industry members. The company’s analysts may use the ratio internally ...
Retention Bonus
A reward given to an employee that serves as an incentive to keep that key employee on the job during a significant business cycle, like a merger o ...
Infrastructure
Basic physical systems of a business or country such as roads, utilities, transportation, communication, sewage, and water and electric systems, am ...
Cost Control
Act of managing and/or reducing business expenditures done by determining the costs and evaluating if such expenses are affordable and reasonable. ...
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SEE FOREX TUTORIAL
Introduction to Inflation
I asked my grandparents about the cost of living during World War II. They told me people during that period could buy a house for $5,000, a car fo ...
Choosing Your Bank
Now that you’ve learned the basics of banking and the importance of it, you are now ready to put your money in a bank. But which bank should ...
Introduction to Ethical Investing
Since time immemorial, investors look after better profits and income paying stocks. While many consider themselves as ethical investors, the commo ...
Ethical Investing: Corporate Governance
It is important for ethical investors to determine how companies manage themselves and their relations with investors and stakeholders.
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Macroeconomics: Basic Concepts
The concepts involved in macroeconomics focus on three fields, including national output and income, unemployment, and inflation and deflation. The ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 05:00 | Credit Card Spending | Mar | |
| 14:30 | Industrial Product Price Index | Mar | |
| 14:30 | New Housing Price Index | Mar | |
| 14:30 | Raw Materials Price Index | Mar | |
| 16:00 | Consumer Confidence | Apr | |
| 02:30 | PMI Manufacturing | Apr | |
| 02:30 | Tertiary Industry Index | Apr | |
| 02:30 | PMI Composite | Apr | |
| 08:00 | Public Sector Net Borrowing | Mar |
