EFFECTIVE INTEREST RATE Definition

Bookmark and Share

EFFECTIVE INTEREST RATE is the cost of credit on a yearly basis expressed as a percentage. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the note.

Learn new Accounting Terms

BUNDESBANK is the German central bank.

SHARPE RATIO, named after William P. Sharpe, is a measurement of portfolio trading performance. It is calculated by subtracting risk free rate from total portfolio return, then dividing by the standard deviation of the portfolio:Sharpe ratio = Total portfolio return - Risk free rate / Portfolio standard deviation.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.