Alpha measures the active return on an investment, gauging performance relative to a market index or benchmark.
Alpha generation refers to the ability to achieve investment returns exceeding a market index's benchmark return, adjusted for risk.
A benchmark is a standard or point of reference against which things may be compared or assessed, commonly used in financial markets to measure the performance of a portfolio against a market index.
A Capitalization-weighted Index is a type of market index in which each component's weight is determined by its total market capitalization. This method gives larger companies a greater influence on the index's performance.
Index Fund Investing refers to an investment strategy that seeks to replicate the performance of a specific market index, promoting diversification, reducing costs, and minimizing the need for active management.
A comprehensive overview of market index numbers representing weighted values of the components that make up the index, including stock market indices weighted by prices and outstanding shares.
An in-depth exploration of Historical Volatility (HV), including its definition, calculation methods, uses in finance, and practical applications.
A comprehensive guide to index investing, including an overview of strategies, practical examples, and frequently asked questions.
A comprehensive guide to understanding indexed annuities, including their definition, workings, potential yields, and associated caps.
A detailed exploration of market indices, covering their definition, how indexing works, various types, popular examples, and their significance in the financial markets.
The S&P 500 Index is a market-capitalization-weighted index of the 500 leading publicly traded companies in the U.S., providing valuable insights and playing a crucial role in investment strategies.
An in-depth exploration of tracker funds, including their definition, how they function, various examples, and their role in investment portfolios.
