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Posts tagged as “Market Risk”

130-30 Strategy

The 130-30 Strategy is an investment methodology used by institutional investors, hedge funds, and asset managers, often referred to as a long-short equity strategy.

The Capital Asset Pricing Model (CAPM)

The Capital Asset Pricing Model (CAPM), developed in the 1960s by William Sharpe, John Lintner, and Jan Mossin, provides a framework to evaluate the expected return of an investment relative to its risk.

The MABA Matrix

MABA stands for Market Attractiveness-Business Assessment. The matrix typically uses a 3x3 grid (creating nine cells) to plot business units based on two key dimensions.

Off-Balance-Sheet Risk

Off-balance-sheet (OBS) risk refers to the potential for financial losses or liabilities arising from activities or transactions that do not appear directly on a company's balance sheet.

Market Making

Market making is a critical function in financial markets, acting as the lubricant that ensures smooth and efficient trading.