Eric Berch

Eric Berch

Annualized gain

If stock X appreciates 1.5% in one month, the annualizedgain for that stock over a twelve month period is (12 x 1.5%) = 18%. Compounded over the 12 month period, the gain is (1.015)^12 -1 = 19.6%.

Historical cost

Describes the accounting cost carried in the books for a current cost of the item.

Ian Berch

Bifurcation Diagram

A graph that shows the critical points where bifurcation occurs, and the possible solutions that exist at that point.

Operating ratio

A ratio that measures a firm's operating efficiency.

Eric Berch Ian Berch
Overlay strategy

A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the activities of money managers.

Perfect market view (of capital structure)

Analysis of a firm'scapital structure decision, which shows the irrelevance of capital structure in a perfect capital market.
Mark Berch Mark Berch