Data Analysis In Wealth Management Flashcards
What is duplicate data
When data is repeated, this may lead to inaccurate data or incorrect analysis
What is invalid entries
Data that is inaccurate, incomplete, or incorrectly formatted
What is incorrect assumptions
Mistaken or unfounded beliefs used as the basis for financial models or investment decisions
What is a benchmark
Standard reference points used to measure the performance of investments, portfolios, or strategies
What is historical data
Past data, often used to identify trends, patterns, or the performance of assets
What is peer group data
Data from comparable entities, such as investment firms, funds, or companies, used for performance analysis
What are sector benchmarks
Performance metrics specific to an industry sector, used to compare an investment’s performance
What is the price to earnings ratio
A valuation ratio that compares the price of a company’s stock to its earnings per shar e
What is the dividend yield
The annual dividend payment as a percentage of the stock price
What is earnings per share
The portion of a company’s profit allocated to each outstanding share of common stock
What is return on equity
A measure of a company’s profitability relative to shareholders’ equity
What is bond yield
The income return on an investment in bonds, typically expressed as a percentage
Why is simple interest
Interest calculated only on the principal amount, not on accumulated interest
What is compound interest
Interest is calculated on both the initial principal and the accumulated interest
What is extrapolation
Using data trends to predict future outcomes beyond the data se t
What is scenario analysis
A process of analysing different future outcomes based on varying assumptions and conditions
What is stress testing
Simulating extreme market conditions to evaluate the stability of investments or portfolios
What is growth rate (dividends)
The annualised rate at which dividends are expected to grow over time
What are charts
Visual representations of data, typically used to identify trends and patterns
What are spreadsheets
Electronic documents for organising, analysing, and storing data, often used for calculations and modelling
What are tables
Structured arrangement of data, often used to display detailed financial information
What is a word processing software
Software used for creating, editing, and formatting text documents
What is a presentation software
Software for creating visual presentations, often used to communicate complex data effectively
What are scatter plots
Graphical representation of data points on a two-dimensional plane
What are bar charts
A chart that uses bars to represent data values for comparison
What are pie charts
A circular chart divided into sectors to illustrate numerical proportions
What are line graphs
A chart that uses a line to represent data points over a period of time
