Examlex
The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum.
Market Index
An indicator used to represent the performance of specific sectors or the market as a whole, often compiled from a set of selected stocks.
Active Portfolio
A portfolio that undergoes frequent trading and adjustments by a manager in an attempt to outperform the market or a specific benchmark.
Treynor-Black Model
A portfolio optimization model that blends a passive and an active portfolio for potential risk-adjusted returns superior to the market.
Alpha Coefficient
A measure of the performance on a risk-adjusted basis, calculating how much a portfolio or investment has returned in comparison to the overall market or a benchmark index.
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