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Definition of Zero-Beta Porfolio A portfolio without any systematic risk is called Zero-beta portfolio. This kind of portfolio is for risk averse investors as its expected return equals the risk free rate of return and is quite low. It has zero correlation with market movements. It does not attract investors when the share prices in […]
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Definition of Z-bond It is the final tranche in a series of mortgage-backed securities that is the last one to receive payment. Z-bonds are used in some collateralized mortgage obligations. It does not pay coupon payments while the principal is being paid on earlier bonds. Interest payable on a Z-bond is added to the […]
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Definition of Z-Score Z-Score is also known as standard score shows how standard deviated is an element from the mean. This can be calculated using the following formula: z = (X – μ) / σ Here, z = z-score, X = the value of the element, μ = population mean, and σ = standard […]
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Definition of Z-Share Z-Share are shares of mutual fund which the employees of that fund are permitted to own. The employees may themselves buy Z-shares or receive them as a reward or a compensation package. These are similar to stock option/grants for employees of the mutual fund organizations. Z-Shares are just like financial incentives […]
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Definition of Z-test A statistical test which compares the sample and population means to find out if there is a significant difference. A-test requires a simple random sample with normal distribution and mostly used for dealing large samples i.e. when n ≥ 30. Explanation of Z-test Hypothesis testing is one of the key purpose […]
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Definition of Z-tranche It is a special type of bond class in a sequential pay collateralized mortgage obligation. This class of bond does not receive any interest or principal payments until all other tranches have been completely paid off. In a Z-tranche, the interest that is not paid is accrued and added to the principal […]
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Definition of Zacks Investment Research Zacks Investment Research is an organization which was incorporated in 1977 to provide financial data, information, and analysis to the professional investors. This data, information, and analysis help professional investors in making financial decisions for clients and themselves. The organization offers summaries and research reports of several stock prices, […]
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Definition of Zacks Lifecycle Index Zacks Investment Research, Inc. developed a series of indexes which are used as benchmarks for the lifecycle of target-gate funds. Each target-date fund has a different index as a benchmark. Domestic binds, U.S. equities and international equities are constituents of Zacks lifecycle index. Explanation of Zacks Lifecycle Index […]
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Definition of Zakat There are five basic pillars of Islam. Zakat is one of those five basic pillars and involves distribution of wealth from wealthy to poor and needy people. This pillar is based on the principle that everything belongs to Allah Almighty thus the wealth people have shall be distributed among the needy […]
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