Risk Parity
What is risk parity Risk parity is an investing strategy that aims to balance risk across asset classes. The goal is to achieve a portfolio...
Net Interest Income
Net interest income is the difference between revenues from interest-bearing assets and costs of servicing liabilities. Bank assets typically consist of commercial and personal...
Bear Call Spread
What is a Bear Call Spread A bear call spread is an options strategy that involves buying and selling two calls with different strike prices...
What is a Direct Cost?
In economics and accounting, a direct cost is a cost directly associated with the object for which the account is maintained. In contrast, a...
Short Call
Introducing Short Call Short call is an investing strategy that involves selling call options with the goal of making a profit when the underlying security's...
Arrow’s Impossibility Theorem
What is Arrow's Impossibility Theorem Arrow's Impossibility Theorem is a key result in social choice theory, which studies how collective decisions can be made from...
How to Calculate Marginal Profit
If you have ever wondered how to calculate marginal profit, you have come to the right place. The definition of marginal profit is simple:...
Platykurtic
What is platykurtic data and why is it important Platykurtic data is data that is more evenly distributed than normal data. In statistics, this term...
What is a Vis Major?
The term vis major refers to an irresistible, greater force. Although we can attempt to prevent loss by prudent actions, diligence, and care, sometimes...
The Consequences of the Wealth Effect?
When a change in perceived wealth is accompanied by a change in spending behavior, we may see a wealth effect. In simple terms, the...