An annuity due and an ordinary annuity are two types of annuities that differ primarily by the timings of the payments. Both are widely used in the financial markets but the use of ordinary annuity mechanisms is more common. Let’s discuss what ordinary annuities are, annuity due, how these types of annuities work, and their …
Ordinary Annuity Vs. Annuity Due – What’s the Difference? Read More »
Employees may receive additional rewards, bonuses, gifts, and cash from employers and clients for certain performance achievements. These additional compensation arrangements must not affect employees’ professional integrity, objectivity, and independence. Let us discuss additional compensation arrangements and how the CFA institute guides dealing under such scenarios. Additional Compensation Arrangements Standard – Definition The Chartered Financial …
What is the Additional Compensation Arrangement Standard? Read More »
The alternative hypothesis is a way to propose a contrasting view on a proposed theory by a researcher. It tries to prove the original statement provided by the null statement false. Let us discuss what an alternative hypothesis is, how it is different from the null hypothesis, its types, and some examples in our article. …
What is an Alternative Hypothesis? Definition, Types, and Examples Read More »
Probability refers to the chances of an event happening in statistical terms. The probability of two events means the chances of both events happening at the same time, one at a time, or one after the other. The rule of addition describes the relationship between the probability of two events when they can be mutually …
What is the Addition Rule of Probabilities? Definition, Calculation, Examples, and More Read More »
The after-tax cost of debt is the effective interest rate adjusted for the corporate tax paid by a borrower. It helps a company understand the impact of tax on its borrowings. Let’s understand what is the after-tax cost of debt and how to calculate it. What is the After-Tax Cost of Debt? The cost of …
What is the After-Tax Cost of Debt and How to Calculate It? Read More »
The nominal after-tax rate is the base rate of return on an investment adjusted for taxes. It provides an alternative approach to investors for comparing different investment options adjusted for different tax rates. Let’s understand what the nominal post-tax rate of return is and how it is calculated. What is the Nominal Rate of Return? …
How to Calculate Nominal After-Tax Rate of Return? Read More »
Active and passive portfolio management styles are two contrasting investing strategies. One involves active participation and management of the portfolio while the other requires fewer movements. Let us discuss what active and passive portfolio management styles are and what are the key differences between them. What is Active Portfolio Management? Active portfolio management refers to …
Active Vs. Passive Portfolio Management – What’s the Difference? Read More »
Index funds are often passively managed funds following a benchmark index like NASDAQ 100. They aim to generate similar returns to their benchmarks. An actively managed fund incurs higher costs and is a riskier option. However, it offers an incentive for higher returns. What is an Index Fund? An index fund is a fund that …
Index Funds Vs Actively Managed Funds – What are the Key Differences? Read More »
Traders can choose between active and passive investing styles. Both contrasting trading methodologies offer unique benefits and risks to investors. Let us discuss what active and passive investing styles and strategies are and which is a better choice for investors. What is Active Investing? Active investing is an investing style where the investors are actively …
What is Active Investing? Definition, Strategies, Vs Passive Income Read More »
With technological advancement, methods of investing have also revolutionized with digital avenues to invest in options, forex, stocks, etc. Although investment and trading have become easier and more accessible to more people, the risk of failure is also high. A petty wrong move and you can lose all of the money you invested. Many platforms …
How to Backtest Options Strategies? Best Tool You Can Use Read More »
