Datasets:
sohomghosh
/
FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
EQUITY RISK
The RISK of loss due to an adverse move in the direction of EQUITY prices or INDEXES. Equity risk is a form of DIRECTIONAL RISK.
palgrave
0
67.25
7
0
5.5
4.4
8.05
7.75
9.8
EQUITY SWAP
See EQUITY INDEX SWAP.
palgrave
0
50.5
7.2
0
2.9
2.9
15.68
2
11.6
EQUITY TRANCHE
See RESIDUAL SECURITY.
palgrave
0
-24.64
17.4
0
11.15
11.5
14.31
2.5
27.87
EQUITY VALUATION
See CORPORATE VALUATION.
palgrave
0
-24.64
17.4
0
15.03
14.6
14.31
2.5
27.87
EQUITY VALUE
The pure EQUITY value of the firm, computed as FIRM VALUE less the MARKET VALUE of DEBT.
palgrave
0
62.68
8.7
0
6.32
7
8.19
10.5
11.51
EQUIVALENT BOND YIELD
See BOND EQUIVALENT YIELD.
palgrave
0
75.88
3.7
0
8.7
7.7
15.68
2
11.6
EQUIVALENT BREAKEVEN
A measure of the number of years it takes for an INVESTOR to recover the initial CONVERSION PREMIUM paid in acquiring a CONVERTIBLE BOND, typically computed as:where Convprem is the conversion premium, C is the COUPON, Convratio is the CONVERSION RATIO, and DPS is DIVIDENDS per share. See also ADJUSTED BREAKEVEN, SIMPLE BREAKEVEN.
palgrave
0
36.12
14.8
0
12.77
16.7
11.51
19.75
18.15
ERISA
See EMPLOYEE RETIREMENT INCOME SECURITY ACT.
palgrave
0
6.17
13.9
0
15.88
12.2
11.83
5
22.4
ERM
See ENTERPRISE RISK MANAGEMENT.
palgrave
0
33.58
9.6
0
15.95
13.5
15.68
3
21.6
ERRORS AND OMISSIONS
The general category of mistakes that arise in the ACCOUNTING or financial records of a company. Errors and omis- sions can be viewed as a form of PROCESS RISK and can be INSURED by anINSURER.
palgrave
0
62.17
8.9
0
8.12
8.6
10.37
11.75
11.57
ESCROW ACCOUNT
A TRUST account that is used to collect from a DEBTOR periodic payments related to a MORTGAGE, an INSURANCE policy, or other contractual CASH FLOWS.
palgrave
0
37.64
14.2
0
11.09
14.4
11.19
17.5
18
ESOP
See EMPLOYEE STOCK OWNERSHIP PLAN.
palgrave
0
49.48
7.6
0
11.92
9.3
10.2
3.5
18
ESOT
See EMPLOYEE SHARE OWNERSHIP TRUST.
palgrave
0
49.48
7.6
0
13.08
10.3
10.2
3.5
18
ESTOPPEL
A legal rule of evidence that prohibits a person from denying a statement or allegation that contradicts or reverses a previous statement, or which has otherwise already been legally established.
palgrave
0
24.11
17.4
0
15.04
19.6
10.91
22
20
ETF
See EXCHANGE-TRADED FUND.
palgrave
0
34.59
9.2
0
15.03
16.2
14.31
1.5
1.2
ETHICAL INVESTMENT
See SOCIALLY RESPONSIBLE INVESTMENT.
palgrave
0
-34.11
19
0
23.2
19.4
15.68
4
31.6
EU
See ROPEAN UNION.
palgrave
0
93.81
0.9
0
1.52
3.6
14.31
0.5
1.2
EUREX
An electronic EXCHANGE owned by DEUTSCHE BORSE and the Swiss Exchange that specializes in DERIVATIVES. Eurex was created in 1998 when the parent exchanges merged their derivative affiliates, Deutsche Terminborse and Swiss Options and Financial Futures Exchange.
palgrave
0
44.24
11.7
0
17.52
16.5
12.24
13.25
16.05
EURIBOR
See EURO INTERBANK OFFERED RATE.
palgrave
0
49.48
7.6
0
9.6
7.4
13.36
2.5
10
EURO
A unit of CURRENCY adopted in 1999 by countries comprising the PEAN MONETARY UNION; early commercial exchange transactions were ultimately supplemented by circulation of SPECIE. The euro, which com- prises of a fixed percentage of the domestic currencies of participating nations, is considered a RESERVE CURRENCY.A EUROCURRENCY CERTIFICATE from a London-based branch or be issued with fixed or floatingCOUPONS and in varying maturities and are often traded on a secondary basis between DEALERS.
palgrave
0
17.51
19.9
0
16.26
24.1
13.67
27.75
23.92
EURO COMMERCIAL PAPER (ECP)
Short-term, unsecured discount DEBT SECURITIES with MATURITIES ranging from 1 to 360 days issued by compan- ies in the EUROMARKETS. A SYNDICATE of DEALERS places ECP on a best efforts basis; unlike US COMMERCIAL PAPER, ECP issues may be unrated and need not be backed by SWINGLINES. See also EUROBOND, EURO MEDIUM-TERM NOTE, EURONOTE.
palgrave
0
53.21
10.3
11.9
11.42
12.1
13.01
11.333333
12.39
EURO DEPOSIT
A EUROCURRENCY time DEPOSIT issued by a BANK, often from a London-based branch of SUBSIDIARY. Unlike EURO CERTIFICATES OF DEPOSIT, Eurodeposits are generally not tradable on a secondary basis.
palgrave
0
39.84
11.3
0
13.91
12.5
11.43
8.75
11.32
EURO OVERNIGHT INDEX AVERAGE
EURO overnight INDEX average of INTEREST RATES on unsecured EURO DEPOSITS arranged by London-based BROKERS (quoted as EURONIA) or Continental markets (quoted as EONIA).EURONOTE, EURO COMMERCIAL PAPER.
palgrave
0
1.77
19.7
0
18.69
22.4
15.5
21.5
19.69
EUROCLEAR
A European organization established in 1968 and responsible for SETTLEMENT and CLEARING of EUROBONDS, EQUITIES, and INVESTMENT FUNDS. See also CLEARSTREAM.
palgrave
0
26.98
12.1
0
17.43
14.1
12.43
7.75
15.63
EUROCURRENCY
An ASSET or LIABILITY created outside the country of ori- gin, e.g., a US dollar LOAN outside the United States is a EURODOLLAR loan, a yen DEPOSIT outside of Japan is a Euroyen deposit. Eurocurrency transactions are typically free of home market REGULATIONS and may attract favorable TAX and RESERVE treatment.
palgrave
0
37.13
14.4
0
11.78
15.4
10.78
16.75
16.47
EURODOLLAR
A US dollar ASSET or LIABILITY located outside the United States, and the single largest element of the EUROCURRENCY market. Eurodollar LOANS are created when a BANK lends dollars through an offshore branch, an EDGE ACT BANK, or an INTERNATIONAL BANKING FACILITY (IBF). Eurodollar DEPOSITS arise through the acceptance of funds from off- shore branches or IBFs.
palgrave
0
52.19
10.7
13.6
12.82
13.3
10.4
12.833333
13.92
EUROEQUITY ISSUE
(1) An issuance of SHARES by a company on an over- seas EXCHANGE, denominated in the overseas CURRENCY rather than in the issuing company’s home currency. (2) An issuance of shares by a company that occurs simultaneously, in several domestic markets, through an internationalSYNDICATE.
palgrave
0
1.44
24
0
14.17
26.5
11.2
33
23.96
EURONIA
See EURO OVERNIGHT INDEX AVERAGE.EUROBOND, NOTE ISSUANCE FACILITY, REVOLVING UNDERWRITING FACILITY.
palgrave
0
-15.84
18.2
0
26.37
22.2
15.67
10.5
18.95
EUROPE 1992
See SINGLE MARKET.
palgrave
0
59.97
5.6
0
3.43
5.2
0.15
0.5
1.2
(EBRD)
A MULTILATERAL DEVELOPMENT BANK created in 1990 to assist in the economic development of Central and Eastern European nations via infrastructure and project LOANS to private and public sector BORROWERS.
palgrave
0
15.65
18.5
0
16.55
20.7
13.55
23
21.33
EUROPEAN BARRIER OPTION
See POINT BARRIER OPTION.
palgrave
0
50.5
7.2
0
7.25
6.5
11.73
2
11.6
EUROPEAN CURRENCY UNIT (ECU)
A unit of account, created by the EUROPEAN ECONOMIC COMMUNITY in 1979 as part of the European Monetary System, based on a weighted average of the CURRENCIES of the member countries. The ECU was superseded by the creation of the EUROPEAN MONETARY UNION and the introduction of the EURO in 1999.
palgrave
0
45.59
13.2
0
10.22
13.7
11.09
18.75
17.26
EUROPEAN DEVELOPMENT FUND (EDF)
A fund created via the TREATY OF ROME in 1957, operated by the EUROPEAN UNION, which provides grants and LOANS in Africa, the Caribbean, and the Pacific.
palgrave
0
60.99
11.5
0
9.23
14.2
13.75
18.5
18.21
EUROPEAN ECONOMIC AREA (EEA)
An organization that includes the EUROPEAN UNION plus Norway, Switzerland, and Liechtenstein.
palgrave
0
33.92
11.5
0
20
16.7
14.76
8
14.8
EUROPEAN MONETARY SYSTEM (EMS)
A framework of monetary cooper- ation and EXCHANGE RATE stabilization established in 1979 (and lead- ing ultimately to a stronger union in 1989 via the EUROPEAN MONETARYUNION). Under the EMS’s Exchange Rate Mechanism, participating countries agreed to hold the value of their national currencies within pre-agreed bands referenced in terms of EUROPEAN CURRENCY UNITS and to take corrective actions as needed when drifting outside the band.
palgrave
0
29.52
17.3
0
15.5
21.8
13.17
23.5
21.08
EUROPEAN OPTION
An OPTION contract that can only be EXERCISED by the buyer at MATURITY. See also AMERICAN OPTION, BERMUDAN OPTION.
palgrave
0
44.91
9.4
0
9.31
7.1
9.09
5.25
8.01
EUROPEAN TERMS
A commonly used quotation mechanism in the FOREIGN EXCHANGE markets that indicates how many units of a foreign CURRENCY can be exchanged for a US dollar. See also AMERICAN TERMS, RECIPROCAL RATE.
palgrave
0
46.78
10.7
0
11.6
10.7
9.86
11.5
13.9
EUROSECURITY
A SECURITY (EQUITY, BOND, or other securitized and tradable ASSET) that is issued and traded in the EUROMARKETS.
palgrave
0
27.83
13.9
0
11.42
12.4
12.42
13
16.09
EVA
See ECONOMIC VALUE ADDED.
palgrave
0
50.5
7.2
0
7.25
6.5
11.73
2
11.6
EVENT DRIVEN
A common HEDGE FUND strategy where a manager may invest in DISTRESSED ASSETS and RISK ARBITRAGE positions, as well as other corporate restructuring events that may include CARVE-OUTS, STOCK BUYBACKS, BANKRUPTCIES, and REORGANIZATIONS.
palgrave
0
21.06
18.5
0
17.76
23.9
13.89
24.5
21.68
EVENT RISK
The RISK of loss from an unexpected CREDIT or economic event/ action, such as a CREDIT RATING downgrade, DEFAULT, MORATORIUM, or EXCHANGE CONTROLS. The onset of event risk can be difficult to predict and the potential financial impact can be hard to estimate, as losses do not follow traditional STOCHASTIC PROCESSES.
palgrave
0
37.13
14.4
0
12.48
16
11.71
17.75
18.04
EVERGREEN
(1) A REVOLVING CREDIT FACILITY without a specific MATURITY; the facility rolls over automatically every quarter or year until the BANK decides to convert it into a term LOAN with a defined maturity. (2) In the United Kingdom, a gradual infusion of CAPITAL into a new, or recapital- ized, company.
palgrave
0
-4.66
26.3
0
11.1
26.9
11.17
37
26.4
EVT
See EXTREME VALUE THEORY.
palgrave
0
33.58
9.6
0
7.25
6.5
11.73
2
11.6
EX-ALL
A share of COMMON STOCK that lacks DIVIDEND rights and VOTING RIGHTS and is only entitled to possible CAPITAL appreciation.
palgrave
0
34.26
13.5
0
12.59
13.1
10.16
15
14
EX-ANTE PORTFOLIO RETURN
See EXPECTED PORTFOLIO RETURN.
palgrave
0
8.2
13.1
0
14.5
12.4
11.73
3
21.6
EX-DIVIDEND
(1) A share of COMMON STOCK without any rights to the current period DIVIDEND. (2) The time period between the announcement and payment of dividends.
palgrave
0
46.1
13
0
10.62
14.6
10.56
17.5
16.4
EX-GRATIA
Literally, “from favor”: a goodwill payment from an INSURER to an INSURED even though no SETTLEMENT is actually due or pay- able. Ex gratias are generally arranged to strengthen business relationships.
palgrave
0
38.82
11.7
0
13.45
12.3
10.01
10.75
12.65
EX-RIGHTS (XR)
The purchase of a SHARE of STOCK for which the INVES- TOR is not entitled to any associated RIGHTS.
palgrave
0
69.11
8.3
0
6.85
8.1
9.57
11.5
11.81
EX-WARRANT (XW
A SHARE of STOCK for which the INVESTOR is not entitled to any associated WARRANT.
palgrave
0
64.71
8
0
8.05
7.4
8.59
8.5
11.33
EXCEPTIONAL ITEMS
Profit and loss items incurred in the normal course of a company’s business which are of an unusually large magnitude. Exceptional items appear ABOVE THE LINE, as a separate disclosure item. See also EXTRAORDINARY ITEMS.
palgrave
0
51.14
9
11.9
11.7
9.4
9.18
7.166667
11.54
EXCESS
In the United Kingdom, a DEDUCTIBLE on an INSURANCE POLICY.
palgrave
0
52.87
8.4
0
9.08
7.1
8.87
6
12
EXCESS INSURANCE
Any INSURANCE coverage that an INSURED arranges over and above the primary insurance CONTRACT, such as an UMBRELLA POLICY. Excess insurance is generally designed to protect against losses from LIABILITY or unexpected damage that are not adequately covered through the primary contract. Also known as EXCESS POLICY.
palgrave
0
30.16
13
15
15.02
13.3
9.45
12.166667
13.09
EXCESS KURTOSIS
An adjustment made to the computation of KURTOSIS so that the resulting kurtosis for a NORMAL DISTRIBUTION is zero. This indicates that any distribution with excess kurtosis > 0 has “fatter tails” than a comparable normal distribution. Excess kurtosis is obtained via:1where N is the number of observations, xi is an observation, μ is the MEAN, σ is the STANDARD DEVIATION. See also SKEWNESS.
palgrave
0
38.52
11.8
14.2
11.89
11
10.69
11.75
12.67
EXCESS LAYER
Any INSURANCE coverage that becomes effective once the INSURED’s DEDUCTIBLE has been exhausted. The excess layer also applies to INSURERS or REINSURERS who choose to set their ATTACHMENT points at a particular distance above the EXPECTED LOSS level. See also HORIZONTAL LAYERING, VERTICAL LAYERING.
palgrave
0
31.17
12.6
15
15.19
13.2
11.54
11.666667
16.79
EXCESS POLICY
See EXCESS INSURANCE.
palgrave
0
34.59
9.2
0
9.23
9.9
14.31
1.5
14.53
EXCESS RESERVES
RESERVES held by a BANK that are greater than the amount required by the regulatory authority. Excess reserves can be sold between banks.
palgrave
0
68.26
6.6
0
10.01
7.9
9.01
5.75
8.08
EXCESS RETURN
The RETURN on an INVESTMENT over and above what the market expects or requires. Excess return can be generated through ACTIVE BETS, and is typically measured against a market BENCHMARK established through a framework such as the CAPITAL ASSET PRICING MODEL.
palgrave
0
50.67
11.3
0
13
13.7
10.43
12.75
12.1
EXCESS SHARES
In a RIGHTS issue, the SHARES that are not taken up by existing SHAREHOLDERS; these may be taken up by the UNDERWRITING SYNDICATE.
palgrave
0
56.59
11.1
0
9.52
12.2
9.58
15.5
16.16
EXCESS SPREAD
In a SECURITIZATION transaction, the difference between the CASH FLOW generated by the COLLATERAL POOL (after charge-offs and other EXPENSES) and the INTEREST payable to INVESTORS holding the ASSET- BACKED SECURITY. Excess spread may be held in ESCROW as an additional form of CREDIT enhancement until MATURITY of the transaction, at which time it may be paid to investors in the RESIDUAL TRANCHE.
palgrave
0
31.04
16.8
0
13.41
19.4
10.46
22.75
19.58
EXCHANGE
(1) A central physical or electronic marketplace, generally approved or authorized by a regulatory authority, which provides the facil- ities needed to bring together buyers and sellers of ASSETS (such as BONDS, COMMON STOCK, and DERIVATIVES), and allow for appropriate PRICE DIS- COVERY. An exchange does not typically set prices or trade for its own account.(2) The process of swapping assets or cash between parties.
palgrave
0
30.03
17.1
0
13.59
20.5
12.29
22.25
19.15
EXCHANGE CONTROLS
Restrictions imposed by national CENTRAL BANK or monetary authority on local CURRENCY flows that limit TRADING, prohibit exporters from drawing CREDIT from a BANK, or forbid residents from owning foreign BANK ACCOUNTS or local bank accounts with foreign currency. Suchcontrols, which are a manifestation of SOVEREIGN RISK, are generally imposed to discourage speculative inflows or outflows. See also BLOCKED CURRENCY.
palgrave
0
25.8
14.6
15.9
16.77
16.7
12.26
15
16.67
EXCHANGE FOR PHYSICAL (EFP)
A facility offered by certain EXCHANGES where two parties can agree to SWAP, off exchange, a FUTURES contract for a physical ASSET at the price quoted on the exchange. Before an EFP trans- action can be concluded through the facility it must be registered with theCLEARINGHOUSE.
palgrave
0
48.13
12.3
0
11.78
13.9
10.27
14.5
13.55
EXCHANGE OFFER
In a capital RESTRUCTURING, a proposal to exist- ing INVESTORS in a company’s DEBT and EQUITY to swap their current SECURITIES for new securities with different terms, which are typically less economically attractive. The exchange offer is used as a means of averting a filing for BANKRUPTCY.
palgrave
0
30.7
14.8
0
12.77
15
10.85
17.75
17.06
EXCHANGE RATE
See FOREIGN .
palgrave
0
35.61
8.8
0
-1.61
5.5
11.63
0.5
0.8
EXCHEQUER
(1) In the United Kingdom, an ACCOUNT held by the BANK OF ENGLAND that contains government funds, including REVENUES raised through TAXES. (2) A government department that is responsible for collecting taxes and other REVENUES (3) A treasury account.
palgrave
0
31.89
18.5
0
13.36
23.7
11.24
25.5
19.7
EXCLUSION
Specific RISK exposures that are not covered through an INSURANCE CONTRACT. The more exclusions an insurance contract con- tains, the smaller the amount of risk transferred from INSURED to INSURERor INSURER to REINSURER. Common exclusions include losses from uninsur- able CATASTROPHIC HAZARDS, losses from normal use/DEPRECIATION, and duplicative (though not excess) covers. Exclusions may be contained within the policy, or in an EXCLUSION RIDER or ENDORSEMENT.Also know as EXCLUDED PERIL. See also RETENTION.
palgrave
0
39.74
11.3
13.7
15.83
14.2
11.71
10.7
13.51
EXCLUSION RIDER
An ENDORSEMENT attached to an INSURANCE CONTRACT eliminating coverage for previously included PERILS. The details of the rider supersede those contained in the original contract.
palgrave
0
24.95
12.9
0
17.1
13.8
12.47
10.25
17.8
EXECUTION
The process of agreeing and then consummating the terms of a SECURITIES trade. An execution results in the exchange of securities and cash between seller and buyer. See also RISK.
palgrave
0
52.87
8.4
9.7
9.66
7.1
9.4
5.333333
8
EXECUTION ONLY
Services provided by a BROKER that are based strictly on EXECUTION and involve no INVESTMENT advice.
palgrave
0
38.32
11.9
0
12.87
11.6
13.31
11
13.9
EXECUTION RATE
The amount of trades that are CROSSED once MATCHED within a DARK POOL or on an EXCHANGE.
palgrave
0
96.52
4
0
6.67
7
8.19
7.5
6.8
EXECUTION RISK
(1) The RISK that a SECURITIES TRADE will not be exe- cuted under current market prices, or per the terms of an ORDER. (2) The RISK of lowering ENTERPRISE VALUE by not being able to successfully gain entry into a new market, introduce a new product or service, or absorb a new acquisition.
palgrave
0
26.14
22.8
0
8.43
26.1
11.63
32.5
25.73
EXECUTIVE BOARD
See MANAGEMENT BOARD.
palgrave
0
59.97
5.6
0
9.23
9.9
9.05
1.5
14.53
EXECUTIVE DIRECTOR
A board DIRECTOR that is also a member of the company’s EXECUTIVE MANAGEMENT group. An executive director is not considered to be independent for GOVERNANCE and control purposes. See also LEAD INDEPENDENT DIRECTOR, NON.
palgrave
0
34.63
11.2
14.6
12.57
10
8.84
8.666667
13.93
EXECUTIVE MANAGEMENT
A team within a company that is responsible for managing the tactical and strategic operations of the firm. The head of the executive management team is the CHIEF EXECUTIVE OFFICER, who may be appointed by the BOARD OF DIRECTORS.
palgrave
0
43.22
12.1
0
10.68
11.4
9.06
15.25
16.01
EXECUTOR
An individual responsible for carrying out the terms of a will, including consolidating ASSETS, settling outstanding DEBTS, and distributing residual property to named BENEFICIARIES.
palgrave
0
-3.65
19.7
0
20.48
21.8
14.7
22
26.27
EXEMPT GILTS
A form of GILT in which the TAX payable on INTEREST COUPONS is deducted by the government before distribution to INVESTORS.
palgrave
0
58.62
10.3
0
10.91
12.1
9.94
14.5
14.11
EXEMPT SECURITY
In the United States, a SECURITY that does not have to adhere to REGISTRATION requirements set forth by the SECURITIES AND EXCHANGE COMMISSION. Securities that are commonly exempted included
palgrave
0
31.38
12.5
0
14.14
12.1
9.26
11.75
16.83
EXEMPT UNIT TRUST
In the United Kingdom, a form of UNIT TRUST that is exempt from corporation TAX and CAPITAL GAINS tax and can only be purchased and sold by tax-exempt institutional INVESTORS, such as PENSION FUNDS.
palgrave
0
45.43
15.4
0
10.8
18.4
9.5
21
15.95
EXERCISE DATE
The date on which an OPTION can be EXERCISED. For EUROPEAN OPTIONS and BERMUDAN OPTIONS this occurs on a date cer- tain, for AMERICAN OPTIONS it may be any date.
palgrave
0
73.17
6.8
0
6.89
6.8
8.59
8
8.67
EXERCISE NOTICE
A written notice from the buyer to the seller of an OPTION that it intends to EXERCISE its rights under the CONTRACT, either buying or selling the UNDERLYING at the STRIKE PRICE.
palgrave
0
47.46
14.6
0
9.59
16.2
10.65
18
15.3
EXERCISE PRICE
See STRIKE PRICE.
palgrave
0
119.19
-2.7
0
1.52
3.6
9.05
0.5
1.2
EXHAUST
The level at which the COLLATERAL securing a MARGIN LOAN or PURPOSE LOAN has been depleted, requiring the borrower to post add- itional collateral or forcing the BANK to liquidate the collateral on hand to repay the loan.
palgrave
0
24.45
19.3
0
10.92
20.4
9.68
27
21.52
EXIMBANK
See EXPORT IMPORT BANK.
palgrave
0
75.88
3.7
0
4.35
4.1
11.73
1
1.6
EXOGENOUS LIQUIDITY
LIQUIDITY and LIQUIDITY RISK that relate to an entire industry or national system, and are not confined to, or significantly influenced by, a single firm and its actions. See also ASSET LIQUIDITY RISK,ASSET-FUNDING LIQUIDITY RISK, ENDOGENOUS LIQUIDITY, FUNDING LIQUIDITY RISK.
palgrave
0
8.88
17
0
15.78
16.5
10.55
16
14
EXOTIC OPTION
See COMPLEX OPTION.
palgrave
0
59.97
5.6
0
5.35
6.8
14.31
0.5
1.2
EXOTIC SWAP
See COMPLEX SWAP.
palgrave
0
93.81
0.9
0
1.52
3.6
14.31
0.5
1.2
EXPECTATIONS THEORY
A theory of INTEREST RATES indicating that the expectations of INVESTORS influence the TERM STRUCTURE of rates. Thus, if investors expect future rates will be higher than current rates, theYIELD CURVE will be upward sloping, and vice versa. Also known as MARKET EXPECTATIONS THEORY. See also LIQUIDITY PREFERENCE THEORY, MARKET SEGMENTATION THEORY.Additional references: Lutz and Lutz (1951); Meiselman (1962).
palgrave
0
39.53
11.4
13.4
15.25
14.1
11.06
10.625
12.7
EXPECTED CREDIT LOSS
An average, or mathematically expected, CREDIT loss, generally determined through a combination of expected CREDIT RISK exposure, PROBABILITY of DEFAULT, and anticipated RECOVERY in DEFAULT. FINANCIAL INSTITUTIONS allocate CREDIT RESERVES in sup- port of expected credit losses. See also UN, WORST-CASE CREDIT LOSS.
palgrave
0
6.2
15.9
15.9
17.45
15.6
12.06
12.166667
17.81
EXPECTED LOSS
The EXPECTED VALUE, or MEAN, of a statistical loss dis- tribution function. The loss distribution function may be created to compute CREDIT losses, INSURANCE losses, or other financial losses.E(Rp) = z, x=1 wxE(Rx)where E(Rp) is the expected return of the portfolio, E(Rx) is the expected return of asset x in the portfolio, Wx is the weight of asset x in the portfolio, Z is the number of assets in the portfolio Also known as EX-ANTE PORTFOLIO RETURN. See also PORTFOLIO RETURN
palgrave
0
35.91
14.9
15.9
10.28
15.4
10.29
18.5
14.68
EXPECTED RETURN
The estimated value of an ASSET or INVESTMENT, typically determined from a probability distribution of all possible return outcomes.
palgrave
0
1.43
17.8
0
16.88
16.3
11.23
16.5
20.23
EXPECTED SHORTFALL
See EXPECTED TAIL LOSS.
palgrave
0
75.88
3.7
0
4.35
4.1
7.78
2
11.6
EXPECTED TAIL LOSS
A form of VALUE-AT-RISK (VAR) that measures, for a given TAIL PROBABILITY, the average or EXPECTED LOSS conditional on the loss exceeding the corresponding VAR. Also known as EXPECTED SHORTFALL. See also EXTREME VALUE THEORY.
palgrave
0
42.68
10.2
12.5
11.7
10.1
9.63
7.5
12.68
EXPECTED UTILITY
The weighted average utility value – or satisfaction from income or wealth – that is derived from a particular activity. Utility is generally used in an economic or theoretical RISK MANAGEMENT framework;precise measurement of a company’s utility is not generally considered feasible or practical.
palgrave
0
6.84
17.8
0
15.66
16.7
11.55
20
21.53
EXPECTED VALUE
(1) The MEAN of a distribution of values that a random variable can take. (2) The value that is obtained given certain possible outcomes and PROBABILITIES of occurrence. In financial RISK MANAGEMENT terms this is often summarized as frequency (probability) times severity (outcome), or:where Prob is the probability of occurrence, O1 is outcome 1 and O2 is out- come 2.
palgrave
0
32.57
16.2
0
11.85
17.9
11.18
21
18
EXPECTED VOLATILITY
An estimate of the VOLATILITY in a particular ASSET or market that is expected to occur in the future, used in the pricing of specific types of DERIVATIVES.
palgrave
0
34.6
15.4
0
9.35
14.3
11.23
20
19.77
EXPENSE
A cost associated with the acquisition of goods or services or the production of goods intended for resale.
palgrave
0
44.75
11.5
0
11.08
11.1
9.79
13
16.09
EXPENSE LOADING
A margin an INSURER adds in the PREMIUM LOADING process to cover expenses such as AGENT COMMISSIONS, PREMIUM TAXES, marketing support costs, and contingencies. See also FAIR PREMIUM, PURE PREMIUM.
palgrave
0
39.33
11.5
0
13.27
12.3
11.75
12
14
EXPENSE RATIO
In INSURANCE, a measure of an INSURER’s ability to cover its UNDERWRITING expenses with earned PREMIUM, computed as:where IE is incurred expense and Pr is premium.The lower the ratio, the more premium an insurer preserves as profit. See also COMBINED RATIO, LOSS RATIO.
palgrave
0
32.73
14
0
12.24
14.2
11.31
15.75
16.04
EXPERIENCE ACCOUNT
(1) An account established for future DEBITS and CREDITS related to a FINITE INSURANCE CONTRACT. (2) The specific history of loss experience an INSURER has with a given INSURED, which is often used to help formulate future PREMIUM rates for a broader class of insureds. (2) See also EXPERIENCE RATING.
palgrave
0
12.27
24
0
11.68
27.3
12.43
35
26.4
EXPERIENCE RATED POLICY
A LOSS-SENSITIVE INSURANCE CON- TRACT where the INSURER charges a PREMIUM that is directly related to the INSURED’s past loss experience: the greater the past losses, the higher the premium.
palgrave
0
32.57
16.2
0
13.47
18.9
12.49
23
21.33