Mean-Variance Analysis Measurement of high risk choices based on the predicted values and variance of outcomes possible. … [Read more...]
Mean-Variance Criterion
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Mean-Variance Criterion Portfolio selection strategy based on means and variances of expected returns from each. Selection of lower variance portfolio to match a specific expected return or higher expected return portfolio to match specified level of variance. … [Read more...]
Mean-Variance Efficient Portfolio
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Mean-Variance Efficient Portfolio Refer : Markowitz efficient portfolio. Portfolio with highest expected return for a given risk evaluation. … [Read more...]
Measurement Error
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Measurement Error Inaccuracies arising in evaluating explanatory variables in a regression analysis that causes bias in parameters estimated. … [Read more...]
Medium-Term Note
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Medium-Term Note Debt instruments originating from a corporate entity and offered by agent of the corporate to investors at any time during a fixed period. Maturity may be in following bands: up to 30 years, 18 months to 2 years, 1 year to 18 months, and 9 months to 1 year. … [Read more...]
Mega Cap
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Mega Cap Businesses or companies that have a market capitalization exceeding $200 billion. … [Read more...]
Membership or a Seat on the Exchange
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Membership or a Seat on the Exchange Number of exchange positions that allow holder to conduct trades in his own accounts and in that of clients’ by means of charging a fee for such execution of trades. … [Read more...]
Merchandise
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Merchandise Goods that can be moved. For example, cars, equipment, appliances, textiles etc. … [Read more...]
Merchant Bank
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Merchant Bank A bank that provides advice on mergers, acquisitions, and other major financial events. The bank does not usually take deposits or lend money to others. Very similar to an investment bank. … [Read more...]
Merger
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Merger Purchase or acquisition where all liabilities and assets are absorbed by buyer. Or A consolidation of companies under specific terms. … [Read more...]
Mimic
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Mimic A duplicating occurrence or imitation giving rise to incorrect conclusions. … [Read more...]
Minimum Price Contract
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Minimum Price Contract Forward contracts that come with a guarantee of a minimum price for delivery of the agricultural commodity underlying the contract. … [Read more...]
Minimum Purchases
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Minimum Purchases Used in mutual funds terminology. Minimum amount needed for opening new account by purchasing the units or minimum additional deposit into account required. With automatic purchase plans, these limits may be lowered. … [Read more...]
Minimum-Variance Frontier
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Minimum-Variance Frontier Graphical representation of lowest minimum portfolio variance, achievable for a specific expected return with a portfolio. … [Read more...]
Minimum-Variance Portfolio
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Minimum-Variance Portfolio A set of assets grouped in a portfolio to give lowest risk for expected returns. … [Read more...]
Minority Interest
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Minority Interest Ownership by entity or individual other than parent company in a subsidiary consolidated with a parent company. … [Read more...]
Mismatch Bond
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Mismatch Bond Note that carries floating interest rate. The rate is adjusted at greater frequency than the rollover period. For example a note whose interest is adjusted based on the one-year interest rate but whose payments are made every quarter. … [Read more...]
Modeling
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Modeling Creating a depiction or representation of an actual occurrence. Graph, picture, or mathematical representation is considered a model. … [Read more...]
Model Risk
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Model Risk Risk occurring when the financial model used to evaluate the firm's market risks or value transactions fails to fulfill the tasks or identify the risks it is expected to. Considered a subset of operational risk, because it affects the firms that use the model. … [Read more...]
Modern Portfolio Theory
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Modern Portfolio Theory Theory that helps analyze and measure portfolio choices so that efficient diversification is maintained with proper understanding of risk versus return. … [Read more...]
