Tag: theory
Real Bills Doctrine
DefinitionThe real bills doctrine asserts that money should be issued in exchange for short-term real bills of adequate value. The doctrine was developed by...
Random Factor Analysis
What is 'Random Factor Analysis' A statistical analysis performed to determine the origin of random data figures collected. Random factor analysis is...
Rational Expectations Theory
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...
Rational Behavior
What is 'Rational Behavior' A rational behavior decision-making process is based on making choices that result in the most optimal level of...
Random Variable
What is a 'Random Variable' A random variable is a variable whose value is unknown or a function that assigns values to...
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...
Return on Assets – ROA
Return on Assets (ROA) is a ratio designed to measure the efficiency of a company’s management. It indicates the company’s profitability as compared to...
Range Accrual
DefinitionIn finance, a range accrual is a type of derivative product very popular among structured-note investors. It is estimated that more than US$160 billion...
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...
Sharpe Ratio
DefinitionIn finance, the Sharpe ratio is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the...