Tag: theory
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 Walk Theory
What is the 'Random Walk Theory'
The random walk theory suggests that stock price changes have the same distribution and are independent of each other,...
Impression
What is 'Impression' A metric used to quantify the display of an advertisement on a web page. Impressions are used in banner...
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...
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...
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...
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...