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Efficient set |
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Efficient setGraph representing a set of portfolios that maximize expected return at each level of portfolio risk.Efficient set Similar MatchesOperationally efficient marketOperationally efficient marketMarket in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an internally efficient market. Efficient markets theory(EMT)Efficient markets theory(EMT)Principle that all assets are correctly priced by the market, and that there are no bargains. Efficient diversificationEfficient diversificationThe organizing principle of modern portfolio theory, which maintains that any risk-averse investor will search for the highest expected return for any particular level of portfolio risk. Information Coefficient (IC)Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to measure the contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship. Coefficient of determinationCoefficient of determinationA measure of the goodness of fit of the relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return. Also known as R-square. Further SuggestionsMinimum efficient scaleEfficient allocation Efficient capital market Efficient market Gini Coefficient Earnings response coefficient Inefficient portfolio Coefficient of Variation efficient market theory Regression coefficient Correlation coefficient Internally efficient market Efficient market Efficient frontier |
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