Exercise №2

Exercise №2

Equity return- is the amount of net income returned as a percentage of shareholders equity.

Exchange rate - the price of a nation’s currency in terms of another currency.

Financial risk- The possibility that shareholders will lose money when they invest in a company that has debt, if the company's cash flow proves inadequate to meet its financial obligations.

Frontier market- less advanced capital markets from the developing world.

GARCH methodology- is an econometric term developed in 1982 by Robert F. Engle, an economist and 2003 winner of the Nobel Memorial Prize for Economics to describe an approach to estimate volatility in financial markets.

Index- is a statistical measure of change in an economy or a securities market.

International transmission mechanism - any of several channels by which a change in the money supply of a country can cause changes in real variables. Most operate primarily within a country, but some, as through the exchange rate, operate through international transactions.

Investor- is any person who commits capital with the expectation of financial returns. Investors utilize investments in order to grow their money and/or provide an income during retirement, such as with an annuity.

Portfolio theory- is a theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.

Stock market- is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets

Value at risk- is a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame.

Volatility- statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index.

Approximation- not exact, but close enough to be used

Coefficient- a number used to multiply a variable

Function- a special relationship where each input has a single output.

Regression- Regression is a statistical measure that attempts to determine the strength of the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables).

Stochastic-situations or models containing a random element, hence unpredictable and without a stable pattern or order.

Symmetry- is when one shape becomes exactly like another if you flip, slide or turn it

Wavelet transformation- similar to the Fourier transform (or much more to the windowed Fourier transform) with a completely different merit function. The main difference is this: Fourier transform decomposes the signal into sines and cosines, i.e. the functions localized in Fourier space; in contrary the wavelet transform uses functions that are localized in both the real and Fourier space.

Chemists classify molecules according to their symmetry. We will discuss some of the main themes that have arisen in the field of systems biology, including the concepts of robustness, stochastic cell-to-cell variability, and the evolution of molecular interactions within complex networks.