Examlex
Features represent the value a product produces.
EAR
stands for Effective Annual Rate, a calculation that reflects the annual interest on an investment or loan, taking into account the effect of compounding interest.
APR
Annual Percentage Rate, which represents the annualized cost of credit including interest and other charges, helping consumers compare the cost of loans.
Continuous Compounding
Continuous compounding refers to the process of calculating interest on an investment, where the interest amount is reinvested and earns additional interest continuously, leading to exponential growth.
Sharpe Ratio
A metric used to assess the risk-adjusted return of an investment portfolio.
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