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Erstellt / Aktualisiert 17.12.2014 / 16.06.2019
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a graphical representation of a frequency distribution
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Ex Ante

Future possible returns and their probabilities are referred to as ex ante or expectational return probability distributions
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Ex Post

meaning from forwards. based on realized outcomes rathern than anticipated outcomes
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normal distriution

is the familiar bell-shaped distribution that is also known as Gaussian distribution. The normal distribution tends to approcimate many distributions observed in nature and/or generated as the result of human actions and interactions, incl. financial retu
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is the recognition of interest on interest or, more generally, earning on earnings
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Simple interest

A computation that does not incorporate compounding
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Continuous compounding

assumes that earning can instantaneously be reinvested to generate additional earnings
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Discrete compounding

any compounding interval other than continuous compounding is known as discrete compounding