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Accidental Death
Benefits (ADB) |
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A provision added to a life
insurance policy for payment of an additional benefit
in case of death that results from an accident.
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Actively Hedged Funds |
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These can be invested into
equities, fixed interest and money market instruments.
The fund managers can speculate in the derivatives
market and / or employ hedging techniques, utilizing
various option contracts. |
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Alpha |
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A measure of selection risk
(also known as residual risk) of a fund in relation
to a benchmark. A positive alpha is the extra return
awarded to the investor for taking a risk, instead
of accepting the market return. |
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For example, an alpha of
0.3 means the fund outperformed the benchmark by
0.3%. An alpha of –0.5 means a fund’s return was
0.5% less than would have been predicted from the
change in the benchmark alone. |
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Alternative Assets |
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Includes private real estate,
public real estate, venture capital, non-venture
private equity, hedge funds, distressed securities,
oil and gas partnerships, event arbitrage, general
arbitrage, managed funds, commodities, timber and
other. |
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American Stock Exchange |
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AMEX. The second-largest
stock exchange in the U.S., after the New York Stock
Exchange (NYSE). In general, the listing rules are
a little more lenient than those of the NYSE, |
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and thus the AMEX has a
larger representation of stocks and bonds issued
by smaller companies than the NYSE. Some index options
and interest rate options trading also occurs on
the AMEX. The AMEX started as an alternative to
the NYSE. It originated when brokers began meeting
on the curb outside the NYSE in order to trade stocks
that failed to meet the Big Board’s stringent listing
requirements, but the AMEX now has its own trading
floor. In 1998 the parent company of the NASDAQ
purchased the AMEX and combined their markets, although
the two continue to operate separately. also called
The Curb. |
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Annual Rate of Return |
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There are several ways of
calculating this. The most commonly used methodologies
reflect the compounding effect of each period’s
increase or decrease from the previous period. |
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