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A transfer of contract rights to a third party is an obligator.
Holding Period
Refers to the duration of time an investment is held by an investor, impacting the tax treatment of any capital gains.
Reward-to-volatility Ratio
A measure used to determine the amount of return an investment provides relative to its risk, with higher ratios indicating better performance per unit of risk.
Capital Allocation Line
A graphical representation in finance showing risk-versus-return profiles of different portfolios, emphasizing the efficient diversification of assets.
Excess Return
The return on an investment above the return of a benchmark or risk-free rate.
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