October 2024
Intermediate to advanced
432 pages
16h 57m
English
Content preview from Contemporary Finance
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
2Asset Returns and Risk
Yesterday I read in the Wall Street Journal about the melancholy of affluence. “Not in all the five millenia of man’s recorded history have so many been so affluent.” Minds formed by five millenia of scarcity are distorted. The heart can’t take this sort of change. Sometimes it just refuses to accept it.
Saul Bellow, Humboldt’s Gift. Viking Press, 1975
2.1 Asset Returns and Interest Rates
2.1.1 Measuring Asset Returns
Financial analysis usually focuses on asset returns, or changes in the value of a position or portfolio, rather than price levels. The change in position value in currency units, or capital gain on a position of 
units of an asset currently priced at 
, over the time interval 
, is 
, and is part of the profit and loss (P&L) over the interval. The P&L may be realized, based on an actual purchase or sale that unwinds the position or a mark-to-market (MTM) gain or loss, based on an estimate of value.
A common measure of return is the arithmetic, simple, or linear return over a discrete interval
The gross return is . The logarithmic, geometric ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.