DIWORSIFICATION
Act of adding assets in a portfolio that worsens the risk/return trade-off. Investing too much assets with similar correlations lead to an averaging effect, which occurs where risk is at its lowest level and additional assets depletes potential portfolio returns, and the opportunities to outdo a benchmark. Legendary American businessman and stock investor Peter Lynch coined this term in his book One Up Wall Street.
POPULAR TERMS
Target Return
Pricing model used in valuing a business based on what an investor expects from any capital invested in the firm. It is computed by adding the amou ...
Remainder Man
An individual who receives the remaining principal in a trust account after all required payments have been made, such as those to the beneficiary ...
Average Collected Balance
The total average of the collected funds in a bank account in a month. The balance is calculated by adding the collected balance and dividing it by ...
Bankable Funds
Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typica ...
Prudent-Person Rule
A legal maxim that restricts the discretion in a client's account to investments that a prudent person seeking reasonable income and preservati ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Principles of Trading: Well Known Trading Instruments
Traders look at two primary factors when choosing the instruments they desire to trade: liquidity and volatility. Liquidity is the extent to which ...
An Introduction to Forex
The foreign exchange market or forex is the largest financial market in the world. It is where the monetary currencies of countries are traded. Thi ...
Connection of Inflation and Interest Rates
We cannot simply ignore the connectivity of inflation and interest rates. Both items are interrelated. So, whenever there is a news item about a co ...
Do I Need to Move Out or Renovate My House?
Before deciding whether to move our or remodel your home, you need to consider some other factors.
Emotional Attachments. You&rs ...
Principles of Trading: Leverage and Margin
All novice and seasoned traders need to befriend these two great tools to achieve success in trading: leverage and margin.
...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 04:00 | Expected Annual Inflation 2y from now | 4 quarter | |
| 07:00 | Economy Watchers Survey | Oct | |
| 10:30 | New Yuan Loans | Oct | |
| 01:30 | Westpac Consumer Sentiment | Nov | |
| 01:50 | M2 Money Supply + CD | Oct | |
| 02:30 | NAB Business Confidence | Oct | |
| 08:00 | Prelim Machine Tool Orders | Oct | |
| 09:00 | CPI | Oct | |
| 09:00 | Harmonized CPI | Oct |
