The return on an investment after accounting for taxes but not for inflation. Understanding and calculating After-Tax Return is crucial for maximizing investment efficiency and financial planning.
Alpha represents an investment's performance relative to a benchmark index, indicating the active return on investment compared to the market.
An in-depth look at Alpha (\(lpha\)), a measure of investment performance relative to a benchmark, including its historical context, significance, calculations, examples, and related terms.
The annual growth rate is the year-over-year growth rate of an investment over a specified period, crucial for assessing investment performance.
A Defined Contribution Plan is a retirement plan where the contributions by both the employee and employer are predefined, but the future retirement benefits vary based on investment performance.
A Defined-Contribution Plan is a type of retirement plan where contributions are predefined, but the eventual benefits depend on the investment performance of the plan.
The Down-Market Capture Ratio measures an investment's performance relative to a benchmark during down-market periods.
Excess Return refers to the return on an investment above the risk-free rate, providing an essential measure for evaluating investment performance.
An in-depth exploration of investment performance, encompassing definitions, categories, key metrics, historical context, and standards like GIPS.
Jensen's Alpha is a metric that evaluates a portfolio's return above the expected return predicted by the Capital Asset Pricing Model (CAPM).
The Money-Weighted Rate of Return (MWR) measures the return on an investment portfolio considering the timing and amount of cash inflows and outflows, offering a distinct perspective from the Time-Weighted Rate of Return (TWR).
The Money-Weighted Return (MWR) considers the timing and amount of cash flows, offering a unique return metric tailored to the individual investor's experience.
A comprehensive guide to Real Return, its importance in evaluating investments, how it's calculated, and its significance in personal finance and economics.
Risk-adjusted returns measure an investment's return considering the risk taken to achieve that return. This concept is crucial for evaluating investment performance effectively.
An in-depth analysis of Time-Weighted Return (TWR), its calculation, significance, and applications in investment performance measurement.
Return on Invested Capital (ROIC) is a key financial metric that quantifies the amount, expressed as a percentage, earned on a company's total capital, including equity and long-term funded debt. Calculated by dividing total capital into earnings before interest, taxes, and dividends, it reflects a company's efficiency in generating returns.
Variable life insurance is a policy where the face value fluctuates based on the investment performance of a separate account.
Comprehensive guide to understanding the after-tax real rate of return, including its definition, calculation method, and practical examples.
Learn about Jensen's Measure (Alpha), including its definition, calculation, and practical application in evaluating investment performance.
A comprehensive guide to understanding Rate of Return (RoR), including its meaning, formula, practical examples, historical context, and related financial terms.
A detailed look at the realization multiple, explaining its significance in private equity, its calculation, and how it provides insights into investment performance.
A comprehensive guide to understanding the Sharpe Ratio, including its formula, examples, historical context, and significance in evaluating investment performance in relation to risk.
Understand the concept of Total Return, including its definition, calculation methods, and practical examples. Explore how this performance measure reflects the actual rate of return of an investment over a given evaluation period.
A comprehensive guide to understanding and calculating the Up-Market Capture Ratio, which measures an investment manager's performance relative to a rising index.
An in-depth exploration of the Value Added Monthly Index (VAMI), illustrating its purpose, functionality, and applications in financial analysis.
A comprehensive guide that explains Variable Annuitization, covering its mechanisms, benefits, risks, and real-life applications, with detailed examples and comparisons.
A comprehensive exploration of variable-benefit plans, including their definition, history, investment impact, and special considerations for retirement savings.
Understand what Variable Death Benefit means, its advantages and disadvantages, and see an example of how it works within a variable universal life policy.
A comprehensive guide to calculating the yearly rate of return, including formulas, detailed examples, historical context, and practical insights for better financial decision-making.
