What is 'Rational Behavior' A rational behavior decision-making process is based on making choices that result in the most optimal level of benefit or utility for the individual. Most conventional economic theories are created and used under...
Home Ownership by Country Real Estate Mortgage Investment Conduits (REMIC) What is 'Real Estate Mortgage Investment Conduits - REMIC' A complex pool of mortgage securities created for the purpose of acquiring collateral. This base is then divided...
DefinitionIn economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid. Rational expectations ensure internal consistency in models involving uncertainty. To obtain...
DefinitionA real estate broker or real estate salesperson is a person who acts as an intermediary between sellers & buyers of real estate/real property. Their mission is to complete a transaction between the buyer and seller. Real Estate Agent...
Home Ownership by Country Real Estate Mortgage Investment Conduit (REMIC) What is 'Real Estate Mortgage Investment Conduit - REMIC' A special purpose vehicle (SPV) that is used to pool mortgage loans and issue mortgage-backed securities (MBS). Real...
What is 'Rate Level Risk' A type of interest rate risk which asserts that the characteristics of interest rate fluctuation are variable (as opposed to constant) over a period of time. Although interest rates are expected to...
DefinitionReturn on investment is the ratio between the net profit and cost of investment resulting from an investment of some resource. A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is...
What is 'Random Factor Analysis' A statistical analysis performed to determine the origin of random data figures collected. Random factor analysis is used to decipher whether the outlying data is caused by an underlying trend or just...
What is 'Real Time' When a system relays information to a user at a speed that is near instantaneous or has a short delay from when the event actually occurred. Online brokerages often provide a real-time data...
Rainbow Option Definition
Rainbow option is a derivative exposed to two or more sources of uncertainty, as opposed to a simple option that is exposed to one source of uncertainty, such as the price of underlying asset.
What is a Rainbow Option?
An...