Examlex
What are the key components of the scientific process?
Correlation Coefficient
A statistical measure that calculates the strength of the relationship between two variables, ranging from -1 to 1, where 1 indicates a perfect positive correlation and -1 indicates a perfect negative correlation.
Standard Deviation
A statistical measure that represents the dispersion or variability of a data set or investment returns, indicating how much the values in the set deviate from the mean.
Sharpe Ratio
A measure used to assess the risk-adjusted return of an investment by comparing its excess return to its standard deviation of returns.
Holding Period
The length of time an investment is held by an investor before being sold, which can affect tax treatment and investment strategy.
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