Rate anticipation swaps

Rate anticipation swaps

Rate anticipation swaps

An exchange of bonds in a portfolio for new bonds that will achieve the target portfolio duration, based on the investor’s assumptions about future changes in interest rates.

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Range

Range

Range

The high and low prices, or high and low bids and offers recorded during a specified time.

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Random walk

Random walk

Random walk

Theory that stock price changes from day to day are at random; the changes are independent of each other and have the same probability distribution. Many believers of the random walk theory believe that it is impossible to outperform the market consistently without taking additional risk.

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Random variable

Random variable

Random variable

A function that assigns a real number to each and every possible outcome of a random experiment.

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RAMs (Reverse-annuity mortgages)

RAMs (Reverse-annuity mortgages)

RAMs (Reverse-annuity mortgages)

Mortgages in which the bank makes a loan for an amount equal to a percentage of the appraisal value of the home. The loan is then paid to the homeowner in the form of an annuity.

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R squared (R2)

R squared (R2)

R squared (R2)

Square of the correlation coefficient proportion of the variability explained by the linear regression model. For example, an r squared of 75% means that 75% of the variability observed in the dependent variable is explained by the independent variable.

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