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One hundred children with strep throat are tested by a new technique; 98 of them test positive and 2 of them test negative. One hundred children who do not have strep are also tested, and 5 of them test positive.
Residual Standard Deviation
A statistical measure used in finance to estimate the deviation of investment returns from an expected return or the performance benchmark, indicating the risk involved.
Beta
A measure of a security's volatility in relation to the overall market, indicating its relative risk.
Risk-Free Return
The hypothetical earnings from an investment that carries no risk, typically illustrated by the return on government bonds, such as U.S. Treasury bills.
Jensen Measure
A performance metric that evaluates investment manager's returns excess compared to what could have been earned on a risk-adjusted basis.
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