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### Random Variable

Random Variable What is a 'Random Variable' A random variable is a variable whose value is unknown or a function that assigns values to each of an experiment's outcomes. Random variables a

### Rational Choice Theory

DefinitionRational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. The basic

### Rationalization

Rationalization What is 'Rationalization' Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction in

### Rational Pricing

DefinitionRational pricing is the assumption in financial economics that asset prices will reflect the arbitrage-free price of the asset as any deviation from this price will be "arbitraged

### Saitori

Saitori What is 'Saitori' A member of the Tokyo Stock Exchange who facilitates the trading of securities by matching buy and sell orders. Their role is to make the market as orderly and ef

### Sales Mix

Sales Mix What is a 'Sales Mix' Sales mix is a calculation that determines the proportion of each product a business sells, relative to total sales. Sales mix is important, because some pr

### Satisficing

DefinitionSatisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met. The term satisfi

### Sandwich Lease

Sandwich Lease What is 'Sandwich Lease' A lease in which a party rents property from the property owner and then subsequently leases it out to another tenant. In a sandwich lease, the prim

### Callable Bond

DefinitionA callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. In ot

### Call Risk

Call Risk What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem the issue prior to maturity. Th
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