Duress passwords for mobile banking
I wish financial institutions would offer duress passwords as a security feature for online banking. Especially with the widespread use of mobile apps that allow for »
Benford's Law
Benford's Law describes the frequency distribution of the first digit seen in real life numerical data sets. Intuitively, we know that more numbers should start with »
Risk-adjusted returns
The Sharpe ratio helps contextualize financial returns by comparing the expected return to the perceived risk. After finding potential investments with attractive risk / reward characteristics, it's »
Estimating fundamental value
Value investing is predicated on finding companies that are underpriced given their fundamental value (FV). In a dividend discount model, the FV of a firm is »
OpCo / PropCo Valuation
In valuing real-estate intensive enterprises, it can be useful to value the business in parts. Often, there's a natural split between the revenue generating real estate »
Exchange-traded notes
With exchange-traded funds (ETFs), issuing banks holds a basket of underlying assets that trade at close to net asset value. Especially for passive investors, it's easier »
Perverse incentive of high water marks
Performance fees are typically only paid on increases in a fund's net asset value over the previous high water mark (the highest net asset value to »
Fund of funds
Even if you have enough cash to meet the demanding minimum requirements to invest in a high-performing hedge fund, it's hard to gain access because fund »
Low volatility anomaly
If you compare the returns from a basket of the lowest beta stocks in the Russell 1000 to the returns from a basket of highest beta »
Risk in long-short arbitrage
Long-short equity is an investing strategy that involves buying long a security that you feel is undervalued while selling short a related security that you believe »