### Key Ratio

Key Ratio What is 'Key Ratio' A mathematical ratio that illustrates and summarizes the current financial condition of a company. Key ratios can be used to easily obtain an idea of a compan

### Return on Investment

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 favor

### Random Walk Theory

DefinitionA random walk is a mathematical object, known as a stochastic or random process, that describes a path that consists of a succession of random steps on some mathematical space such

### Ratio Analysis

Ratio Analysis What is 'Ratio Analysis' A ratio analysis is a quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items in

### Sampling Error

DefinitionIn statistics, sampling error is incurred when the statistical characteristics of a population are estimated from a subset, or sample, of that population. Since the sample does not

### Call Auction

Call Auction What is 'Call Auction' Where participants buy or sell units of a good. At a call auction, participants place orders to buy or sell units at certain buying or selling prices. O

### Pareto Improvement

DefinitionPareto efficiency or Pareto optimality is a state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion bett

### Pension Fund

DefinitionA pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension Fund A pension fund is a fund that is

### Passive Management

DefinitionPassive management is an investing strategy that tracks a market-weighted index or portfolio. The most popular method is to mimic the performance of an externally specified index b

### Pareto Analysis

DefinitionPareto analysis is a formal technique useful where many possible courses of action are competing for attention. In essence, the problem-solver estimates the benefit delivered by ea
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