Multiple rates of return


 

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Multiple rates of return

More than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a different rate of return.



Multiple rates of return

Similar Matches

Multiple Arbitrage

Multiple Arbitrage

In the context of hedge funds, a style of management where by the fund employs more than one arbitrage strategy. Portfolio manager opportunistically allocates capital among the various strategies in order to create the best risk/reward profile for the overall fund. Common strategies include merger arbitrage, convertible arbitrage, fixed income arbitrage, long/short equities pairs trading, and volatility arbitrage. In the context of equity and private equity investment, this refers to an investment in a firm where by standard multiples (earnings/price, book/price) indicate the price is far cheaper than industry averages.


Options contract multiple

Options contract multiple

A constant, set at $100, that when multiplied by the cash index value gives the dollar value of the stock index underlying an option. That is the dollar value of the underlying stock index = Cash index value x $100 (the options contract multiple).


Forward looking multiple

Forward looking multiple

A truncated expression for a P/E ratio that is based on forward (expected) earnings rather than on trailing earnings.


Multiple listing

Multiple listing

An agreement used by a broker who is a member of a multiple-listing organization, providing the exclusive right to sell with an additional authority and obligation on the part of the listing broker to distribute the listing to the other brokers.


Multiples

Multiples

Another name for price/earnings ratios.


Further Suggestions

Futures contract multiple
Income multipliers or multiples
Multiple Voting
Multiple discriminant analysis (MDA)
Multiple regression
Multiple peril insurance


 
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