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...

Weighted Average – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is Weighted Average?In arithmetic or mathematical calculation, a weighted average refers to average results realized when each datum is multiplied by an established weight. The multiplication is done before the average of the data set is calculated. Although the...

Weighted Average Cost of Equity – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is the Weighted Average Cost of Equity?In finance and accounting, cost of equity in a company is determined using the weighted average cost of equity (WACE). Weighted average cost of equity (WACE) calculates the cost of equity in a company by allocated different...

U-Shaped Recovery – Explained

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

What is a U-Shaped Recovery?A U-Shaped Recovery is a chart used in depicting recession and recovery in an economy. It occurs when an economy undergoes a sharp decline in terms of GDP growth, employment rate and other factors of the economy before the economy recovers...

Multi-Asset Class – Explained

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

What is a Multi-Asset Class?A multi-asset class or a multi-asset fund consists of an amalgam of various asset classes including cash, bonds and equity, in which a person invests. As the name suggests, a multi-class asset comprises at least one asset class, and...

Multi-Level Marketing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Multi-Level Marketing?Multi-level marketing is an approach that direct sales firms follow for influencing their present distributors to add new distributors who receive a certain percentage of sales from their recruits. The recruits tend to be the downline for...

Multilateral Development Bank (MDB) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is a Multilateral Development Bank?A multilateral development bank (MDB) refers to an international financial institution, chartered by at least two nations, in order to promote economic development and growth in poorer or less-developed countries. Important...

Fixed Asset – Explained

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

What is a Fixed Asset?Tangible assets and properties that are owned by a company and generates income for the company are called fixed assets. These assets are tangible and have a long life-span in that they cannot be easily converted into cash. Examples of fixed...

Flat Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Flat Tax?An income tax system in which all individuals (taxpayers) pay the same tax amount without giving regard to the divergence of their income is a flat tax system. A flat tax system maintains equal tax rate on all taxpayers regardless of their income....

Flat Yield Curve – Explained

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

What is a Flat Yield Curve?The flat yield curve is a yield curve that depicts the difference between two bonds (short-term and long-term debt securities) that belong to the same category of credit. The flat yield takes the form of a horizontal line which shows that a...