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How to Beat the Stock Market
Investing is good, but the real challenge for every portfolio manager is to beat the stock market, or beat the market. Of course the term ‘market’ is not very exact. In reality to beat the market is t
http://www.investingforbeginners.eu/how_to_beat_the_stock_market-p0-i20
Investment in Actively-Managed Funds
Active Mutual (Investment) Funds Actively managed investment funds usually are those mutual funds that choose not copy the index (benchmark), but is trying to beat it, so could give for investing person a higher return,
http://www.investingforbeginners.eu/investment_in_activelymanaged_funds
Investment in Index Funds
Investment index funds are contrast to the actively managed funds. These funds do not try to exceed the benchmark, openly saying that just going to keep with it.And the serious advantage of them – applied f
http://www.investingforbeginners.eu/investment_in_index_funds
Stockholder Wealth Maximization
Stockholder wealth maximization is a main goal for firm’s managers in corporate finance. Stockholder wealth maximization is above the profit maximization because of long term orientation and better risk man
http://www.investingforbeginners.eu/stockholder_wealth_maximization
Asset Management
Asset management is a process when assets acquired, monitored and sold on purpose to achieve optimal investment results. There is no strong difference between investment management and asset management. However,
http://www.investingforbeginners.eu/asset_management
Risk-Free Interest Rate
A risk-free interest rate is rate of interests that would be paid by fixed income securities that contains no risk at all. For a very long time short-term US Treasury securities was used to d
http://www.investingforbeginners.eu/riskfree_interest_rate
Junk Bonds
Junk bonds are bonds that have a speculative-grade credit rating, which is BB or lower. Junk bonds are riskier but they have higher yields. The spread between junk bond yield and safe bond yield (c
http://www.investingforbeginners.eu/junk_bonds
Investment Performance Measurement
Many investors are happy about investment managers until the stock market is growing, but when the decline starts investment managers gets only the worst words about their job. However, this is wrong attitud
http://www.investingforbeginners.eu/investment_performance_measurement
Treynor Ratio
Treynor ratio is another popular ratio that is used to measure the performance of investment portfolio. This ratio compares the excess return (above risk free return) of a portfolio to beta of that portfolio. Whi
http://www.investingforbeginners.eu/treynor_ratio
Jensens Alpha
Jensen’s alpha is used to measure the performance of an investment portfolio. The higher ratio means better performance of portfolio manager. Basically, this Jensen’s ratio shows the above market port
http://www.investingforbeginners.eu/jensens_alpha
Sharpe Ratio
Sharpe ratio measures the above risk free performance of investment portfolio in relation to its risk. This ratio was developed by William F. Sharpe which introduced the ratio in 1966. Now Sharpe ratio is the mos
http://www.investingforbeginners.eu/sharpe_ratio
Performance Based Compensation
Performance based compensation is a form of compensation for the investment management work depending on quality of results. Performance base compensation is very common in investment management industry and help
http://www.investingforbeginners.eu/performance_based_compensation
Portfolio Manager
A portfolio manager is an investment professional that takes over the management of an investment portfolio. There are many types of managed investment portfolios: mutual funds, pension funds, insurance funds, po
http://www.investingforbeginners.eu/portfolio_manager
Active Investment
Active investment (management) is opposite to passive investment and means that investments are managed by some investment professional that picks the securities according to investment market tendencies and
http://www.investingforbeginners.eu/active_investment
Investment Management Salaries
The media always pay a lot of attention to investment management salaries and maybe those salaries are worth it. Investment management business as investment management consulting or investment fund management re
http://www.investingforbeginners.eu/investment_management_salaries
Asset Performance
Asset performance is a return of an asset over some period. Usually performance is measured on annual basis. But basically performance of any asset depends on its riskiness and the period (most of the stocks and
http://www.investingforbeginners.eu/asset_performance
