Elective Deferral Contribution – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

Egalitarianism – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Egalitarianism?Egalitarianism is a philosophical belief that advocates removal of social, economic and political inequalities among human beings. It sees individuals as morally and fundamentally equal. What are the Objectives of Egalitarianism?Egalitarianism...

Efficient Frontier (Investment) – Explained

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

What is the Efficient Frontier?The efficient frontier is a combination of the most favorable portfolios that offer returns at a high rate and have the lowest risk. It is a set of optimal portfolios that maintain efficient positions in terms of expected return and...

Efficiency Principle (Economics) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Efficiency Principle?The efficiency principle is an economic theory that relates the efficiency of an action to the uniformity between the marginal benefits and the marginal social cost of allocated resources. This theory states that an action has the...

Effects Test (Disparate Impact) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Effects Test?How Does the Effects Test Work? What is an Effects Test?The effects test is a theory that is used in evaluating the disparate or discriminatory impacts of credit policies. A credit policy refers to a set of standards or...

Jumbo Pool (Mortgages) – Explained

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

What is a Jumbo Pool?A Jumbo Pool is a set of similar mortgage loans from different mortgage lenders. It is a diversified mortgage-backed security made available to investors on the open market. Jumbo pools have an edge over single-issuer pools because they are sets...

Jensen’s Measure – Explained

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

What is Jensen’s Measure?A return on an investment or a portfolio that supersedes or is below the anticipated return on the portfolio or investment can be measured using the Jensen’s Measure. The Jensen’s Measure statistically measures the return on...

General Depreciation System – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is a General Depreciation System?General Depreciation System (GDS) refers to a method used to compute personal property’s depreciation. GDS allows the use of tax depreciation (declining-balance-method) under the Modified Accelerated Cost Recovery System...

Gamma (Options Pricing) – Explained

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

What is Gamma in Options Pricing?Gamma is a tool used to measure the rate of an options price changes with regard to the underlying asset. Gamma that is positive is an indication that the trading position is also positive. Contrarily, when there is an upward or...

Gamification – Explained

by TheBusinessProfessor | Feb 23, 2025 | Management, Leadership, & Organizational Behavior

What is Gamification?Gamification is where you incorporate a game system into an already existing website or an online community for the purpose of inspiring participation, consumer loyalty, and user engagement. Why Does Gamification Motivate?People are naturally...