Sensitivity analysis
Analysis of the effect on a project's profitability due to changes in sales, cost, and so on. ...
Sensitivity Analysis
A technique for determining the outcome of a decision if a key prediction turns out to be wrong.
Notes:
For example, it tries to evaluate the effects on a project's profits, costs, sales, etc.
Interest Rate Sensitivity
Interest rate sensitivity defines how much the value of a bond or bond fund changes when interest rates shift.
Business Definition for: rate sensitivity
Dictionary of Banking Terms
rate sensitivity ...
sensitivity test
sensitivity analysis
A single variant test to see how dependent a forecast, projection or stress test outcome is upon a single, selected variable or assumption.
Sensitivity Analysis. An approach to taking into account risk by calculating the changes in potential returns if the original assumptions change.
Sensitivity Analysis: Sensitivity analysis is the examination of the change in value of an investment by changing various factors, such as the interest rate, the mortgage term, and the required equity yield.
Sensitivity Analysis: Analysis of how changing an input variable in a financial model affects the value, performance, or solvency of a given project.
While sensitivity to the value of an underlier may be a significant determinant of a derivative portfolio's risk, other sensitivities are also important. These include sensitivities to implied volatilities, interest rates, and the passage of time.
Sensitivity of a stock's return to the return on the market
portfolio.
Beta ...
Sensitivity analysis
A sensitivity analysis shows the impact on earnings, cash flows or fair values of financial instruments resulting from changes in relevant commodity prices, interest rates, and foreign exchange rates.
Separate entity assumption ...
Sensitivity Analysis
Cost structures can be anticipated to change over time. Management must carefully analyze these changes to manage profitability.
5. Sensitivity analysis covering key risk areas and a summary of the effects of such on the projections, in particular their impact on the funding requirement.
The sensitivity of a fixed interest security to interest rates is measured by duration or, more accurately, modified duration.
Categories:
Financial theory ...
How sensitivity analysis performed in bank?
How do perform your data analysis?
Post a question - any question - to the WikiAnswers community: ...
The sensitivity of an options value to a change in interest rates. The first derivative of option worth with respect to interest rates. See also Greeks
Roller Coaster Swap ...
High Sensitivity Nano-Optical Method to Detect Measles Virus
$ 6,222.00
$ 28,904.50 ...
Beta; sensitivity of a portfolio's rate of return to the market
Rxi
Market excess return
(market proxy return minus risk-free proxy) ...
Î" The sensitivity of an option's value to a change in the underlying stock's price.
V0 The initial value of the option.
V The current value of the option.
The sensitivity of an option's value to a change in volatility.
VOLATILITY
The market's price range and movement within that range. The
direction of the price move, whether up or down, is not relevant.
A type of sensitivity analysis that indicates the value at which a key variable will result in a negative NPV for an investment project.
[ Previous Page ]
Personal Finance Glossary ...
Rho - The sensitivity of the option price to a change in the interest rate.
Véga
The sensitivity of a warrant's theoretical value to a change in volatility.
Theta - Is the sensitivity of an option premium or price relative to changes in time. This characteristic tends be viewed on an instantaneous basis in financial literature and on a daily change basis in practice.
Interest Rate Sensitivity
The degree of movement in the price of a security, usually that of a bond, resulting from moves in interest rates. (See also Duration).
Interest Rate Swap
See Swap.
A measure of the sensitivity (i.e., volatility) of a stock or a mutual fund to movements in the overall stock market. The beta for the market is considered to be 1. A fund that mirrors the market, such as an index fund, would also have a beta of 1.
Decision Break-Point Analysis A type of sensitivity analysis that indicates the value at which a key variable will result in a negative NPV for an investment project.
sensitivity The degree of exposure of a security to market risk. sensitivity analysis The investigation into how projected performance varies along with changes in... sentiment A gauge of the mood from investors, consumers or businesses.
Sensitivity analysis Analysis of the effect on a project's profitability due to changes in sales, cost, and so on. Separation property The property that portfolio choice can be separated into two independent tasks: 1) determination of the optimal ...
Duration A risk measure for a bond or bond portfolio which indicates its price sensitivity to a percentage change in interest rates. The longer the duration, the more interest-rate sensitive the bond. Return to top
E ...
Regression coefficient Term yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable. See: Parameter.
A large value (greater than 1) of elasticity indicates sensitivity of demand to price, e.g., luxury goods. Goods with a small value of elasticity (less than 1) have a demand that is insensitive to price, e.g., food.
To estimate the price sensitivity of a portfolio, multiply its duration by the change in rates. If interest rates rise by one percentage point, the share price of a portfolio with an average duration of five years would decline by about 5 percent.
The program covers a broad spectrum of agricultural, manufactured, and semimanufactured products, but stipulates that certain products may not be designated duty-free eligible due to the import sensitivity of U.S. domestic industries.
...
Conversely, the government may put off improvements due to political sensitivity — even in cases of companies that are run well.
Whereas the CAPM looks primarily at the factor sensitivity of the asset's beta, the APT incorporates any number of factors that influence the price of the asset.
More specifically, it is the index of SYSTEMATIC RISK, indicating the sensitivity of return on a security or a PORTFOLIO to return from the market.
As a leader, you can shape the experiences people have at work by reducing fear and inner focus and creating cultures that facilitate enhanced sensitivity, mutual support, vital communication and engagement in the strategy.
Market risk (also called systematic risk, undiversifiable risk) is the single security sensitivity to market movement and is generally measured by the beta coefficient: if the beta coefficient is greater than 1 it tends to amplify the overall ...
A measure of the sensitivity of a security relative to the market. The returns on a security with a beta of one will move in line with the market. If the beta is greater than one, the security will exaggerate market returns.
A measure of the sensitivity of an option or warrant price to changes in the volatility of the underlying asset....(Read more)
Vendor
A person or company, sometimes called a supplier, selling goods, services or property....(Read more) ...
It is the measure of the relative sensitivity of a stock or mutual fund to the market. The market is assigned a beta of 1. The higher the beta, the more sensitive the stock or fund is considered to be relative to the market as a whole.
The Bond Fund Volatility Ratings are S & P's current opinion of a fixed income fund's sensitivity to changing market conditions relative to the risk of a portfolio composed of government securities and denominated in the base currency of the fund.
Part of an economic theory for valuing financial securities and calculating the cost of capital, known as the capital asset pricing model, beta measures the sensitivity of the price of a particular asset to changes in the market as a whole.
Sensitivity of production to price changes. As prices increase, production supply rises (e.g., luxury cars) because the demand for such items decreases. If the production supply does not increase, the goods are considered to be inelastic (e.g., food).
A measure of a bond fund's price sensitivity to interest rates. The longer the duration, the more sensitive a bond's price will be to changes in interest rates.
FLUX - A measure of the sensitivity of CMO cash flows to changes in the prepayment rate of the underlyi...
FLYERS - Speculative or high-risk trades.
FM - The two-character ISO 3166 country code for MICRONESIA, FEDERATED STATES OF.
A statistic generated through regression analysis of stock returns that compares the price sensitivity of a single stock or small group of stocks in relation to a larger group or index of stocks. If, for example, the stock of AT&T has a beta of 0.
A long average maturity of, say, 15 years or more would indicate higher current yields and sensitivity to interest rate changes while a short average maturity, say, ...
During the marketing period, the underwriters are able to contact potential purchasers to assess potential demand and price sensitivity. Shares continue to be publicly traded, if they had been previously listed.
A vega neutral option position will be not be sensitive to volatility fluctuations. These strategies are used to hedge against the risks of price sensitivity, second-order time price sensitivity and time sensitivity, respectively.
After deregulation, the airlines created highly complex pricing models that include the service quality/price sensitivity of various air travelers and offer differential fare/service quality packages designed for each.
A common gauge of the price sensitivity of an asset or portfolio to a change in interest rates.
Personal Finance Headlines
SEARCH: ...
Duration A measure of a bond price's sensitivity to a 100-basis point change in interest rates. A duration of 7 would mean that, given a 100-basis point change up/down in rates, a bond's price would move up/down by 7%.
- E - ...
Duration definition :
A common gauge of the price sensitivity of a fixed income asset or portfolio to a change in interest rates.
FTSE 100, S&P 500 All In One ...
Key Rate Duration - Holding all other maturities constant, this measures the sensitivity of a security or the value of a portfolio to a 1% change in yield for a given maturity.
The calculation is as follows: ...
Vega
A term that describes the sensitivity of the option price to a one-percent change in volatility.
Term yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable.
Regression equation ...
VISA - VISA is an English acronym for Visual Interactive Sensitivity Analysis and designates a support system to the...
..
..
Price Elasticity of Demand - The sensitivity of quantity sold to a percentage change in price; -%changeQ/%changeP.
Privatization - A process whereby publicly owned enterprises are sold to private investors (contrast with nationalization).
 See also: Banks, Expense, Funding, Internal rate of return, Values
  
|
RSS
