Anomaly (physics)In quantum physics an anomaly or quantum anomaly is the failure of a symmetry of a theory's classical action to be a symmetry of any regularization of the full quantum theory. In classical physics, a classical anomaly is the failure of a symmetry to be restored in the limit in which the symmetry-breaking parameter goes to zero. Perhaps the first known anomaly was the dissipative anomaly in turbulence: time-reversibility remains broken (and energy dissipation rate finite) at the limit of vanishing viscosity.
ArbitrageIn economics and finance, arbitrage (ˈɑːrbᵻtrɑːʒ, -trɪdʒ) is the practice of taking advantage of a difference in prices in two or more markets; striking a combination of matching deals to capitalise on the difference, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs.
Gravity anomalyThe gravity anomaly at a location on the Earth's surface is the difference between the observed value of gravity and the value predicted by a theoretical model. If the Earth were an ideal oblate spheroid of uniform density, then the gravity measured at every point on its surface would be given precisely by a simple algebraic expression. However, the Earth has a rugged surface and non-uniform composition, which distorts its gravitational field.
Gauge anomalyIn theoretical physics, a gauge anomaly is an example of an anomaly: it is a feature of quantum mechanics—usually a one-loop diagram—that invalidates the gauge symmetry of a quantum field theory; i.e. of a gauge theory. All gauge anomalies must cancel out. Anomalies in gauge symmetries lead to an inconsistency, since a gauge symmetry is required in order to cancel degrees of freedom with a negative norm which are unphysical (such as a photon polarized in the time direction). Indeed, cancellation occurs in the Standard Model.
Capital assetA capital asset is defined as property of any kind held by an assessee, whether connected with their business or profession or not connected with their business or profession. It includes all kinds of property, movable or immovable, tangible or intangible, fixed or circulating. Thus, land and building, plant and machinery, motorcar, furniture, jewellery, route permits, goodwill, tenancy rights, patents, trademarks, shares, debentures, securities, units, mutual funds, zero-coupon bonds etc. are capital assets.
Intertemporal portfolio choiceIntertemporal portfolio choice is the process of allocating one's investable wealth to various assets, especially financial assets, repeatedly over time, in such a way as to optimize some criterion. The set of asset proportions at any time defines a portfolio. Since the returns on almost all assets are not fully predictable, the criterion has to take financial risk into account. Typically the criterion is the expected value of some concave function of the value of the portfolio after a certain number of time periods—that is, the expected utility of final wealth.
Diversification (finance)In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. If asset prices do not change in perfect synchrony, a diversified portfolio will have less variance than the weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents.
Risk–return spectrumThe risk–return spectrum (also called the risk–return tradeoff or risk–reward) is the relationship between the amount of return gained on an investment and the amount of risk undertaken in that investment. The more return sought, the more risk that must be undertaken. There are various classes of possible investments, each with their own positions on the overall risk-return spectrum. The general progression is: short-term debt; long-term debt; property; high-yield debt; equity.
AssetIn financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetary value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business.
Capital market lineCapital market line (CML) is the tangent line drawn from the point of the risk-free asset to the feasible region for risky assets. The tangency point M represents the market portfolio, so named since all rational investors (minimum variance criterion) should hold their risky assets in the same proportions as their weights in the market portfolio. The CML results from the combination of the market portfolio and the risk-free asset (the point L).
Beta (finance)In finance, the beta (β or market beta or beta coefficient) is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the Stock market as a whole. Beta can be used to indicate the contribution of an individual asset to the market risk of a portfolio when it is added in small quantity. It is referred to as an asset's non-diversifiable risk, systematic risk, or market risk. Beta is not a measure of idiosyncratic risk.
Bouguer anomalyIn geodesy and geophysics, the Bouguer anomaly (named after Pierre Bouguer) is a gravity anomaly, corrected for the height at which it is measured and the attraction of terrain. The height correction alone gives a free-air gravity anomaly. The Bouguer anomaly defined as: Here, is the free-air gravity anomaly.
