Investment – Page 46 – itho's internet resources

Understanding Equivalent Annual Cost (EAC) for Capital Budgeting

By Itho January 20, 2004

[ad_1] What Is the Equivalent Annual Cost (EAC)? Equivalent Annual Cost (EAC) provides a financial measure that allows firms to assess the annual cost associated with owning, operating, and maintaining…

What Are Asset Classes? More Than Just Stocks and Bonds

By Itho January 20, 2004

[ad_1] What Is an Asset Class? An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset classes are…

Accretive: Definition and Examples in Business and Finance

Decoupling: Definition and Examples in Finance

By Itho January 14, 2004

[ad_1] What Is Decoupling? In financial markets, decoupling occurs when the returns of one asset class diverge from their expected or normal pattern of correlation with others. Decoupling thus…

What Is Expectations Theory? Predicting Short-Term Interest Rates

By Itho December 17, 2003

[ad_1] What Is Expectations Theory? Expectations theory attempts to predict what short-term interest rates will be in the future based on current long-term interest rates. The theory suggests that an investor…

Duration Definition and Its Use in Fixed Income Investing

By Itho November 27, 2003

[ad_1] What Is Duration? Duration measures how long it takes, in years, for an investor to be repaid a bond’s price through its total cash flows. It is also used…

Dutch Auctions: How It Works in IPOs and Treasury Sales

By Itho November 27, 2003

[ad_1] In a Dutch auction, an auctioneer starts with a high price and lowers it until someone bids. This differs from traditional auctions, in which the price starts low and…