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RUNNING YIELDAnnual coupon i…CLEAN PRICEThe quoted bond…ACCRUED INTE…Interest that h…DV01Dollar change i…MODIFIED DUR…Measures the pe…MARKET VALUEThe current dol…CARRYThe income earn…COUPONThe bond's stat…ALL-IN YIELDThe total yield…IMPLIED YTMThe yield-to-ma…IMPLIED SPRE…The credit spre…MARKET CAPIT…Share price mul…EV/EBITDAEnterprise valu…EV/FCFEnterprise valu…NET MARGINNet income divi…EBITDA MARGINEBITDA divided …DIVIDEND YIE…Annual dividend…BETAMeasures how mu…HORIZON ANAL…Projects bond r…CARRY RETURNReturn from cou…PRICE RETURN…Price change fr…MONTE CARLO …Generating thou…PORTFOLIO VO…Standard deviat…MINIMUM VARI…The portfolio w…CAPITAL MARK…The line from t…MAXIMUM DRAW…The largest pea…SORTINO RATIORisk-adjusted r…CALMAR RATIOAnnualized retu…KURTOSIS (EX…Measures fat ta…STUDENT'S T …A fat-tailed di…PORTFOLIO BE…How much the po…PORTFOLIO AL…Excess return a…TRACKING ERR…How much the po…INFORMATION …Alpha per unit …HISTORICAL S…Estimate portfo…VAR BACKTESTValidates the V…FX CORRELATI…How currencies …SPOT RATEThe current exc…BASE CURRENCYThe reference c…DOWNSIDE DEV…Volatility of r…REBALANCINGAdjusting portf…ASSET ALLOCA…How a portfolio…RETURN ON EQ…Net income divi…RETURN ON AS…Net income divi…EV/REVENUEEnterprise valu…P/S RATIO (P…Market cap divi…P/B RATIO (P…Share price div…FCF MARGINFree cash flow …DIVIDEND DIS…Values a stock …OPTION-ADJUS…Credit spread a…G-SPREAD (GO…Yield spread of…I-SPREAD (IN…The difference …ASSET SWAP S…The spread an i…GAMMA (Γ)The rate of cha…THETA (Θ)The rate at whi…VEGA (Ν)The sensitivity…RISK-NEUTRAL…The artificial …EQUITY FORWA…A commitment to…COST OF CARRYThe net financi…FX FORWARD R…The agreed exch…DISCOUNT FAC…The present val…COVERED CALLOwning the unde…PROTECTIVE P…Owning the unde…STRADDLEBuying a call a…CREDIT VALUA…The market valu…Z-SPREAD (ZE…The constant sp…EXPECTED LOS…Probability of …BREAKEVEN RA…The yield rise …BREAKEVEN SP…The spread wide…OPTION COST …The spread diff…EFFECTIVE CO…Convexity that …CURRENT YIELDAnnual coupon i…CS01Dollar change i…MACAULAY DUR…The weighted av…CURVE INTERP…Estimating yiel…BOND BENCHMA…A reference bon…DAY COUNT CO…The rule for ca…ROLL-DOWN RE…Price change fr…REINVESTMENT…Income from rei…SKEWNESSMeasures asymme…R-SQUAREDHow well the be…SCENARIO ANA…Evaluate portfo…PARALLEL SHI…A uniform chang…CURVE STEEPE…Long-term rates…CURVE FLATTE…Long-term rates…EFFICIENT MA…The theory that…RETURN ON IN…NOPAT divided b…PEG RATIOP/E ratio divid…GROSS MARGINRevenue minus C…OPERATING MA…Operating incom…CURRENT RATIOCurrent assets …DEBT/EQUITY …Total debt divi…INTEREST COV…EBITDA divided …ASSET TURNOV…Revenue divided…SUM-OF-THE-P…Values a compan…TERMINAL VAL…The value of al…GORDON GROWT…Single-stage DD…H-MODELTwo-stage DDM w…COST OF EQUI…The return shar…IMPLIED SHAR…The per-share e…FOOTBALL FIE…Horizontal bar …PAR VALUE / …The principal a…PULL TO PARThe tendency fo…ZERO-COUPON …A bond that pay…DISCOUNT BONDA bond trading …PREMIUM BONDA bond trading …QUICK RATIO …Current assets …PAYOUT RATIODividends divid…CAPITAL ASSE…Expected return…MODERN PORTF…Markowitz's fra…PRECEDENT TR…Valuation based…DILUTED SHAR…Total shares in…EXPECTED TAI…The average los…STRESS VARVaR calculated …MARGINAL VARThe incremental…EFFECTIVE DU…Duration measur…SPREAD DURAT…Price sensitivi…RISK PARITYPortfolio const…BLACK-LITTER…Combines market…KELLY CRITER…Optimal bet siz…FORWARD POIN…The adjustment …COVERED INTE…Forward rate eq…RANDOM WALK …Stock price cha…BEHAVIORAL F…Studies how psy…SETTLEMENT D…The date when b…ACCRUAL PERI…The time interv…FLAT PRICE (…Bond price quot…INVOICE PRIC…The total price…EX-COUPON DA…The cutoff date…MAKE-WHOLE C…Callable bond f…OPTION VALUE…The price diffe…OPTION-ADJUS…Effective durat…OPTION-ADJUS…Second-order pr…BULLET BONDStandard bond s…SINKING FUND…Bond feature re…DEBT SERVICE…Operating incom…SIMPLE YIELDApproximate yie…YIELD TO CAL…Yield assuming …YIELD TO PUT…Yield assuming …YIELD TO WOR…The lowest yiel…FORWARD RATEThe implied fut…PAR YIELDThe coupon rate…DEFAULT PROB…Annualized prob…RECOVERY RATEPercentage of p…RHO (Ρ)The sensitivity…HISTORICAL V…The realized st…BINOMIAL OPT…A discrete-time…PAR SWAP RAT…The fixed rate …SOFR (SECURE…The US dollar r…BULL CALL SP…Buy a lower-str…COLLARLong stock + pr…DELTA-NEUTRA…A portfolio who…VOLATILITY S…The pattern whe…FORWARD RATE…An OTC contract…DEBT VALUATI…The benefit to …BILATERAL CV…Net XVA combini…LONG STRANGLEBuy an OTM call…BEAR PUT SPR…Buy a higher-st…LONG BUTTERF…Buy a low and h…IRON CONDORSell an OTM put…IRON BUTTERF…Sell an ATM str…PVBP (PRICE …The change in a…LGD (LOSS GI…The fraction of…TAX-EQUIVALE…The pre-tax yie…WEIGHTED AVE…The average tim…YIELD TO MATURITY(YTM)The annualized returnif you hold the bond …∫DIRTY PRICEThe total settlementprice paid for a bond…∫MODIFIED DURATIONMeasures thepercentage price chan…∫DV01Dollar change in valuefor a 1 basis point (…∫TOTAL HORIZONRETURNSum of all returncomponents over the h…∫VALUE AT RISK(VAR)The maximum expectedloss at a given confi…∫CVAR / EXPECTEDSHORTFALLThe average loss inthe worst-case scenar…∫CONVEXITYMeasures the curvatureof the price-yield re…∫STRESS TEST (RATESHOCK)Estimates impact oflarge yield moves usi…∫KEY RATE DURATIONSensitivity to ratechanges at specific m…∫EFFICIENTFRONTIERThe set of portfoliosoffering the highest …∫SHARPE RATIORisk-adjusted return:excess return divided…∫MONTE CARLOSIMULATIONGenerating thousandsof possible future sc…MAXIMUM SHARPEPORTFOLIOThe portfolio with thehighest risk-adjusted…COVARIANCE MATRIXCaptures how assetreturns move together…∫DISCOUNTED CASHFLOW (DCF)Intrinsic valuation bydiscounting projected…∫WEIGHTED AVERAGECOST OF CAPITAL …The blended cost ofequity and debt — the…∫P/E RATIOShare price divided byearnings per share — …∫ENTERPRISE VALUE(EV)Market cap plus netdebt — the total acqu…∫FREE CASH FLOWYIELDFree cash flow dividedby enterprise value.BLACK-SCHOLES-ME…The foundationaloption pricing formul…∫DELTA (Δ)The sensitivity of anoption's price to a $…∫IMPLIEDVOLATILITY (IV)The volatility that,when input into the B…INTEREST RATESWAP (IRS)An agreement toexchange fixed-rate c…PUT-CALL PARITYThe no-arbitragerelationship between …∫FX RISKRisk from exchangerate fluctuations aff…∫CURRENCY EXPOSUREThe fraction ofportfolio value expos…∫FX VOLATILITYStandard deviation ofexchange rate changes…∫FX HEDGINGUsing forwards oroptions to eliminate …∫CROSS RATEAn exchange ratebetween two currencie…∫FixedRiskPortfolioEquityDerivativesFX
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