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Tail Risk (Portfolio) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Tail Risk?Tail risk refers to a form of a portfolio risk where there is a possibility of an investment shifting beyond three standard deviations from its prevailing price. Tail risk measures the variance of investment returns from its average returns. The...

Multiple Discriminant Analysis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Multiple Discriminant Analysis?Multiple discriminant analysis (MDA) is a statistical measure that financial planners use to ascertain the prospective investments when a lot of variables need to be considered. It minimizes the dissimilarity between many...

Wash Sale Rule – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Wash-Sale Rule?In the United States, the Internal Revenue Service (IRS) created the wash-rule as one of the regulations in trade market. The wash-sale rule maintains that any security, stock, bond or option sold in a wash sale is not tax deductible, this...

Weighted Alpha – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Weighted Alpha?In investment market, a weighted alpha evaluates the price of a stock over a year. The performance measured is in relation to the increase and decline in the price of the stock. Typical, an alpha indicates the performance of a security or...

Wedge (Technical Analysis) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Wedge Method of Technical Analysis? In trading, a wedge refers to a method of analysis that takes the form of a triangular shape. Technical analysts use a wedge to depict trends in the market, a wedge has an arrow shape. It is a representation of short and...

Watered Stock – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Watered Stock?A share of a company that is issued at a value higher than the book value of the assets of the issuing company or higher than underlying assets is a watered stock. Shares of this nature are issued by companies as a way of tricking and cheating...
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