Dr. Harvey's Financial Glossary

Friday, May 09, 2008

Home

Forums

Home
0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z	Records Per Page:

R: Fifth letter of a Nasdaq stock symbol specifying that the stock has rights.
R square (R²): Square of the correlation coefficient. The proportion of the variability in one series that can be explained by the variability of one or more other series a regression model. A measure of the quality of fit. 100% R-square means perfect predictability.
R&D: See Also: Research and development
Radar alert: Close monitoring of trading patterns in a company's stock by senior managers to uncover unusual buying activity that might signal a takeover attempt. See: Shark watcher.
Raider: Individual or corporate investor who intends to take control of a company (often ostensibly for greenmail) by buying a controlling interest in its stock and installing new management. Raiders who accumulate 5% or more of the outstanding shares in the target company must report their purchases to the SEC, the exchange of listing, and the target itself. See: takeover.
Rainmaker: A valuable employee, manager or subcontracted person who brings new business to a company.
Rally (recovery): An upward movement of prices. Opposite of reaction.
RAM: See: Reverse-annuity mortgage
RAN: See Also: Revenue Anticipation Note
Random variable: A function that assigns a real number to each and every possible outcome of a random experiment.
Random walk: Theory that stock price changes from day to day are accidental or haphazard; changes are independent of each other and have the same probability distribution. Many believers in the random walk theory believe that it is impossible to outperform the market consistently without taking additional risk.
Randomized strategy: A strategy of introducing into the decision-making process a chance element that is designed to confound the information content of the decision-maker's observed choices.
Range: The high and low prices, or high and low bids and offers, recorded during a specified time.
Range forward: A forward exchange rate contract that places upper and lower bounds on the future cost of foreign exchange.
RAP: See: Regulatory accounting procedures
Rate anticipation swaps: An exchange of bonds in a portfolio for new bonds that will achieve the target portfolio duration, given the investor's assumptions about future changes in interest rates.
Rate base: The value of a regulated public utility and its operations as defined by its regulators and on which the company is allowed to earn a particular rate of return.
Rate covenant: A provision governing a municipal revenue project financed by a revenue bond issue, which establishes the rates to be charged users of the new facility.
Rate lock: An agreement between the mortgage banker and the loan applicant guaranteeing a specified interest rate for a designated period, usually 60 days.
Rate of exchange: See Also: Exchange rate
Rate of interest: The rate, as a proportion of the principal, at which interest is computed.
Rate of return: Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return.
Rate of return ratios: Ratios that measure the profitability of a firm in relation to various measures of investment in the firm.
Rate risk: In banking, the risk that profits may drop or losses occur because a rise in interest_rate forces up the cost_of_funds fixed-rate loans or other fixed-rate assets.
Rate-lock selling: Underwriters of corporate bonds sell Treasuries to hedge what they will take in a planned underwriting.

Page 1 of 18

First Previous [1] 2 3 4 5 6 7 8 9 10 Next Last

ExamSaver Exam Saver CFA,Chartered Financial Analyst CFA Exam CFA Exams Online Exam CFA level 1 CFA Institute

Tour ∴ Dr Harvey ∴ 2005 White Paper ∴ 2006 White Paper ∴ Guarantee ∴ Downloads
Copyright © 1998 - 2008 by FinancialExams™ USA, All Rights Reserved	Privacy Statement Terms Of Use
CFA Institute does not endorse or warrant the accuracy or quality of the products or services offered by FinancialExams.com™. CFA Institute®, CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.