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Hypothesis Testing

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

A mathematical test used to determine whether a claim is true or false.

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Alpha

The percentage by which an investor outperforms a relevant benchmark.
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Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.
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Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
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Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
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Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
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Yield to maturity (YTM)

What is yield to maturity and why is it useful?
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United States Dollar (USD)

The famous greenback our friends in the US use as currency.
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