Morningstar Risk Rating
What is the Morningstar Risk Rating? The Morningstar risk rating, also known as the Morningstar rating or star rating, is a rating assigned to publicly traded ETFs (exchange-traded funds) or mutual funds. Morningstar risk ratings are applied to various funds, including equity ETFs and specialized products like bond ETFs, to assess risk relative to fixed...
Australian Securities Exchange (ASX)
What is the Australian Securities Exchange (ASX)? The Australian Securities Exchange (ASX) is one of the world’s leading financial market exchanges based in Sydney, Australia. As a fully functioning securities exchange, the ASX provides a number of services, such as listings, trading, clearing, settlements, technical and information services, and post-trade services. The Australian Securities Exchange...
Adjusted Beta
What is Adjusted Beta? Adjusted beta tends to estimate a security’s future beta. It is a historical beta adjusted to reflect the tendency of beta to be mean-reverting – the CAPM’s beta value will move towards the market average of 1 over time. The beta estimate based purely on historical data – known as the...
Vasicek Interest Rate Model
What is the Vasicek Interest Rate Model? The Vasicek Interest Rate Model is a mathematical model that tracks and models the evolution of interest rates. It is a one-factor short-rate model and assumes that the movement of interest rates can be modeled based on a single stochastic (or random) factor – the market risk factor....
Non-Competitive Tender
What is Non-Competitive Tender? Non-competitive tenders are a way of purchasing U.S. Treasury securities through non-competitive bids that do not state a particular price or yield for the security. Instead, investors rely on competitive bidders to set an average “market” price and offer to purchase a specific amount of Treasury securities at that price. The...
