Login / Register

Author: Richard Wilson

On By Richard Wilson
in
Leave a comment

Omega Ratio Explanation

Below please find a definition of “Omega Ratio”

Financial Analysis Training & Glossary TermsOmega Ratio: The omega ratio is more sophisticated than a alpha ratio and is the successor of the sharpe or jension ratios that you may already be familiar with.

For even given threshold or targeted return level (r) the Omega Ratio is the weighted gain/loss ratio relative to r. It uses all of the information in a return series instead of simple calculations of figures such as mean and variance.

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Omega ratio, omega ratios, omega ratio calculation, omega ration definition, omega ratio information, omega ratio explanation, omega ratio

On By Richard Wilson
in
Leave a comment

Appraisal Ratio Definition

Below please find a definition of “Appraisal Ratio”

Financial Analysis Training & Glossary TermsAppraisal Ratio: The appraisal ratio is use by fund of fund portfolio managers or hedge fund consultants but is less often seen on a standard 1-2 page hedge fund analytics reports. You find the Appraisal Ratio by taking the alpha of the hedge fund portfolio and dividing it by the non-systematic risk of the portfolio. The result is a ratio that measures the abnormal returns per unit of risk that could at least in principle be diversified away by holding a market index portfolio.

Want to learn more about the Appraisal Ratio?

  • Journal Article using the Appraisal Ratio to look at Japanese Equities
  • PowerPoint Presentation on Ratios, including the Appraisal Ratio
  • Investment analytics report discussing the use of the Appraisal and other portfolio management ratios

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Appraisal Ratio, Appraisal Ratio Definition, Appraisal Ratio Explanation, Appraisal Ratio Calculation, Hedge Fund Appraisal Ratio

On By Richard Wilson
in
Leave a comment

Drawdown Definition

Below please find a definition of “Draw Down”

Financial Analysis Training & Glossary TermsDraw Down: A draw down is the maximum percentage loss from a hedge fund. This is calculated by subtracting the lowest value from its peak net asset value.

You will often here to this a fund’s max draw down over 5 years or max draw down since inception. Some great low volatility funds will have max draw downs of only 3, 5, or 7% while others will have 10 or 20% draw down figures. Sometimes this is due to the nature of their strategy, other times it can show that they have slipped at least once in moving the portfolio out of harms way or building in certain stop losses or hedged positions. All of this depends on the strategy at hand.

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:

What is Drawdown? Define Drawdown, Drawdown definition, Definition of Drawdown, Calculate Drawdown, Drawdown calculation

On By Richard Wilson
in
Leave a comment

R Squared Definition

Below please find a definition of “R Squared”

Financial Analysis Training & Glossary TermsR Squared: Are you looking for the definition of R Squared or an interpretation for the R Squared value for your hedge fund or other type of investment portfolio? Here is a quick run down on what R Squared is…

R-Squared = coefficient in a statistical analysis that allows the observer to see how effective one variable is at forecasting another variable. The higher the R-squared the more effective one variable is at forecasting another. If the R-Squared is 0.0 then one variable has nothing in common with the other. To simplify, an example where R- Squared would be zero is that the population of the United States has nothing to do with what the type of food the population of likes to eat. On the other hand an example of a higher R-Squared could be correlation of gas price to number of fuel efficient automobiles sold. R squared is used to show correlation between a single or group of variables and a specific outcome. The higher the R Squared = the greater the correlation between the variables and the outcome.

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  R Squared, What is R Squared?, R Squared Formula, R Square, R Squared Excel, Linear Regression R Squared, R Square Excel, r squared value, r squared definition, r square explanation

On By Richard Wilson
in
Leave a comment

Sharpe Ratio Definition

Below please find a definition of “Sharpe Ratio”

Financial Analysis Training & Glossary TermsSharpe Ratio: The Sharpe Ratio was created to measure performance after being adjusted for risk. The Sharpe Ratio allows investors to determine how returns were obtained whether it’s due to excess risk assumed on the asset or hedge fund portfolio or if returns were obtained through intelligent planned investment selections. If a portfolio or asset has a high Sharpe ratio then that portfolio or asset has returns that were very successfully risk-adjusted.

Sharpe ratio measures risk to reward ratio and whether the returns of a specific asset or portfolio have properly compensated for the amount of risk undertaken. The higher the Sharpe Ratio = returns are more and more risk adjusted = desirable

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Sharpe Ratio, Sharpe Ratio Definition, Sharpe Ratio Calculation, Sharp Ratio, Sharpe Ratios, Sharpe Ratio Formula, Sharpe Calculation, sharpe ratio excel, sharpe ratio explained, sharpe ratio defined, sharpe ratio investments

On By Richard Wilson
in
Leave a comment

Sortino Ratio Definition

Below please find a definition of “Sortino Ratio”

Financial Analysis Training & Glossary TermsSortino Ratio: The sortino ratio that is used to measure the return of a certain hedge fund portfolio or a specific asset after becoming adjusted for risk. Basically, Sortino Ratio is a revised version of Sharpe’s Ratio because it only negatively affects the returns that fall below a required rate of return of the portfolio or specific asset being measured. (Sharpe’s ratio positively and negatively affects returns)

Sortino Ratio Formula = R – T / D

R = Return on asset or portfolio

T = Required Rate of Return

D = Downside Risk

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on https://BusinessTraining.com

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Sortino Ratio, Sortino Ratio Definition, Sortino Ratio Calculation, Sortino Ratio Excel, Calculate Sortino Ratio, Calculate Sortino Ratio, Sortino Ratio Formula, How to Calculate Sortino Ratio

On By Richard Wilson
in
Leave a comment

How can I stand out from my competition when applying for financial modeling jobs?

Financial ModelingQuestion: How can I stand out from my competition when applying for financial modeling jobs?

Answer: Employers receive thousands of resumes for job openings, partly because open positions are advertised on the Internet and open jobs show up in thousands of job searches. So, your resume likely will go through electronic scanning and screening. So, before you get your foot into the interview room, your resume must stand out. To make you resume stand out, you must personalize each resume submission to the company you are applying to. This is a lot of work for job seekers, but believe it or not, this customization dramatically improves your chances of getting a job, relative to the frustration and delays if you do not customize it. So intelligently insert key words that are relevant to the position and the company, so that automatic screening tools shortlist your resume. Once you get an interview call, make sure you clearly showcase your research into the interviewing company, their business and the kinds of projects they have done in the past, then cite company-specific examples that tie into your financial modeling skills, and talk about the company’s culture and work environment as one that you would ideally like to have in your future work place.

Do You Want to Complete A Financial Modeling Training Course? If you are looking to learn more about completing a financial modeling training program, you should check out our self-paced financial modeling training program on the BusinessTraining.com platform, which is called the Certified Financial Modeling Specialist (CFMS).

Read More Frequently Asked Financial Modeling Questions

On By Richard Wilson
in
Leave a comment

How much can I expect to earn after working in the investment banking industry for 5-7 years?

Investment Banking CertificationQuestion: How much can I expect to earn after working in the investment banking industry for 5-7 years?

Answer: Compensation can vary wildly depending upon numerous factors. Such factors include the size of bank (large bulge bracket firms vs boutiques vs regional banks), the location (London and New York bankers may get paid more than those in other cities), and the performance of the banker, the banker’s group and the banker’s bank. At very junior levels, compensation is not as tied to the group’s performance, but as compensation potential rises, so does its link to the group’s income. All of this having been said, a Vice President at a large firm might expect total compensation in the four hundred thousand to one million dollar range with as much as seventy percent of that taking the form of a bonus.

Read More Frequently Asked Finance Questions

Tags: Competitive salary in the investment banking field, Competitive salary in the investment banking industry, Earning after working for 5-7 years in the investment banking field, Earning after working for 5-7 years in the investment banking industry, Earning after working in the investment banking field for 5-7 years, Earning after working in the investment banking industry for 5-7 years, Expected amount to be earned in the investment banking field, Expected amount to be earned in the investment banking industry, Salary expected in the investment banking field, Salary expected in the investment banking industry, Worthy salary in the investment banking field, Worthy salary in the investment banking industry

On By Richard Wilson
in
Leave a comment

I completed the Certified Investment Banking Specialist (CIBA) program through BusinessTraining.com. I have a good fundamental base of investment banking knowledge now. What type of personal self development work should I now focus on to further my career success in this field?

Investment Banking CertificationQuestion: I completed the Certified Investment Banking Specialist (CIBA) program through BusinessTraining.com. I have a good fundamental base of investment banking knowledge now. What type of personal self development work should I now focus on to further my career success in this field?

Answer: Having completed the Certified Investment Banking Specialist (CIBA) program through BusinessTraining.com, a candidate might next want to focus on a few topics that might aid in the interview process. As an example, a candidate might find a friend with whom he/she could conduct mock interviews; remember from your CIBA course that there are a few interview formats in use such as the historical (walk through your resume), the behavioral (describe you teamwork experience) and the case study (where the candidate is asked to verbally reason through a given problem). The candidate might also take time each day to stay informed about current events, especially those that pertain to the world of finance.

Read More Frequently Asked Finance Questions

Tags: Becoming successful in investment banking career, Becoming successful in investment banking job, Becoming successful in investment banking occupation, Becoming successful in investment banking profession, Becoming successful in investment banking work, Focusing success in the investment banking career, Focusing success in the investment banking job, Focusing success in the investment banking occupation, Focusing success in the investment banking profession, Investment banking expert personal-development, Investment banking expert self-development, Investment banking professional personal-development, Investment banking professional self-development, Investment banking specialist personal-development, Investment banking specialist self-development, Tips for further success in the investment banking career, Tips for further success in the investment banking job, Tips for further success in the investment banking occupation, Tips for further success in the investment banking profession, Tips for further success in the investment banking work

On By Richard Wilson
in
Leave a comment

Are there some little known negative aspects about working in the investment banking industry that I should know about?

Investment Banking CertificationQuestion: Are there some little known negative aspects about working in the investment banking industry that I should know about?

Answer: There are certainly some negative aspects to a career in investment banking. The long hours (both in the office and on the road) would have to be put near the top of the list; many find that the job requires too much of a sacrifice in terms of time away from family, friends and other personal pursuits. Some bankers may also find the job too stressful for their own long-term mental (and even physical) health; at higher ranks, compensation can swing wildly based on a single deal. The whims of the financial markets can also cause stress to a banker as he or she may fear lower compensation or even the loss of his/her job.

Read More Frequently Asked Finance Questions

Tags: Advancing in the investment banking field, Advancing in the investment banking industry, Little known negative aspects about working in the investment banking field, Little known negative aspects about working in the investment banking industry, Negative aspects about working in the investment banking field, Negative aspects about working in the investment banking industry, Not really negative aspects in investment banking field, Not really negative aspects in investment banking industry, Tips about negative aspects in investment banking field, Tips about negative aspects in investment banking industry

Contact

328 Crandon Blvd Suite 225 Key Biscayne, FL 33149

E-Mail
support@investmentcertifications.com

Phone
+1 (305) 503-9050

Linkedin Facebook

Certifications

Company

Copyright © 2025 by G.T.C Institute.
All Rights Reserved