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Home Dictionary I Investment Analysis Investment analysis involves researching and evaluating a security or industry to predict its future performance and determine its suitability for a particular investor. Investment analysis may also include the evaluation or creation of an overall financial strategy. Types of investment analysis include bottom-up, bottom-up, fundamental and technical. Investment Horizon
September 25, 2022 The investment horizon is the period of time during which the investor is ready to hold the portfolio. Liquidate
September 25, 2022 Liquidate means to sell an asset for cash. Managed Futures
September 25, 2022 Managed futures are alternative investments consisting of a portfolio of futures contracts that are actively managed by professionals. Unsuitable Investment (Unsuitability)
September 25, 2022 Unsuitable investments are those that do not serve the goals and needs of investors as well as they could. William F. Sharpe
September 25, 2022 William F. Sharp is an economist credited with developing the CAPM and the Sharpe ratio. Accredited Investor
September 25, 2022 Accredited investors are persons classified by the SEC as qualified to invest in complex or complex types of securities. Active Management
September 25, 2022 Active management includes making decisions to buy and sell assets in a portfolio. Aggressive Investment Strategy
September 25, 2022 Aggressive investing takes more risk in pursuit of greater returns. Annual Equivalent Rate (AER)
September 25, 2022 The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest. Annual Return
September 25, 2022 Annual or yearly return is a measure of how much an investment has increased on average each year over a period of time. Annualize
September 25, 2022 An annual analysis can be used to predict the financial performance of an asset, security or company for the next year. Annualized Rate of Return
September 25, 2022 Annual rate of return is the process of determining the rate of return on an investment on an annual basis. Annualized Total Return
September 25, 2022 Annual total return is the geometric mean of the amount of money earned by an investment each year over a given period of time. Anomaly
September 25, 2022 Anomalies are events that deviate from the predictions of economic or financial models and undermine the underlying assumptions of those models. Appreciation
September 25, 2022 Valuation is the increase in the value of an asset over time. Asset Class
September 25, 2022 An asset class is a group of investments that have similar characteristics and are subject to the same laws and regulations. Asset Management
September 25, 2022 The goal of asset management is to maximize the value of an investment portfolio over time while maintaining an acceptable level of risk. Assets Under Management (AUM)
September 25, 2022 Assets Under Management (AUM) is the total market value of investments that an individual or entity manages on behalf of investors. Attribution Analysis
September 25, 2022 Attribution analysis is an evaluation tool used to explain and analyze the performance of a portfolio (or portfolio manager), especially when compared to a certain benchmark. Automated Customer Account Transfer Service (ACATS)
September 25, 2022 Automated Account Transfer Service (ACATS) can be used to transfer stocks, bonds, cash, mutual funds, mutual funds, options, and other investment products. Average Annual Return (AAR)
September 25, 2022 Average Annual Return (AAR) is a percentage that represents the average historical return of a mutual fund, typically reported over three, five, and 10 years. Basis
September 25, 2022 In finance, a basis is usually used to refer to the costs or total costs of an investment. Basket Trade
September 25, 2022 Basket trading is a portfolio management strategy used by institutional investors to buy or sell a large number of securities at the same time. Benchmark
September 25, 2022 Benchmark is a standard criterion for measuring performance. Bid
September 25, 2022 A bid is an offer made by an investor, trader or dealer to buy an asset or compete for a contract.