L3 Terms

SS03: - bayesian rigidity - cognitive dissonance - convoy Behavior = herding behavior - ebullience cycle = “unopened envelope” syndrome(p. 86). - hedonic editing - self-attribution bias SS06/07: Solow residual (TFP related). SS08: Correlation Breakdown: intl risk diversification disappear when most needed SS09: KRD=Key rate duration=multifunctional duration=functional duration SS10: repo = the repurchase agreement = RP SS11: semiactive strategies = enhanced index = risk controlled active strategies SS12: reconstitution effects SS13: Samuelson effects, Real options under uncertainty SS14: VAR (analytical method) = variance–covariance method = the delta-normal method SS15: synthetic/equitizing cash; sell a receiver swaption = remove call on a callable bond SS16: VWAP=Simple Logical Participation Strategies; corridor = tolerance band SS17: fundamental factor model = another micro attribution; decompose -> attribute. SS18: capital employed = Weighted-Average Capital (similar to Denominator of Modified Dietz). ------------------------------ Some terms are from this thread. http://www.analystforum.com/phorums/read.php?13,1142904,1143888#msg-1143888