# Variable

• A value determined within the context of a model. Also called endogenous variable.

Embedded terms in definition
Endogenous variable

Referenced Terms
Annuity: Fixed number of identical cash flows that start one period from today. Typically, annuity products are used to provide income in retirement.Is an insurance product which comes in two basic forms: fixed and Variable. The fixed version can make a lump sum or periodic lifetime payments to the annuitant. The variable version has a separate account attached to the annuity contract. This type of contract is considered a security because it is dependent on equities and its total value is subject to fluctuate due to market risk. There are many annuity varieties. Some are: Annuity Certain, Annuity Due, Deferred Annuity, Fixed Annuity, Life Annuity, Ordinary Annuity, Perpetuity, and Variable Annuity. Also, see Interest Impact on Present Value of Ordinary Annuity of 1 Per Period.A regular periodic payment made by an insurance company to a policyholder for a specified period of time.A finite stream of equal and periodic (regular) cash flows. These cash flows can be inflows of returns earned on investments or outflows of funds invested to earn future returns.(1) A series of periodic payments. (2) A contract under which an insurance company promises to make a series of regular payments to a named individual for life.

Autocorrelation: Is the statistical dependency of items within a time series. This compares to Serial Correlation.The correlation of a Variable with itself over successive time intervals.

Back end load: A sales charge or commission for an investment paid by the buyer at the time of sale.Refers to charges which are imposed upon the redemption or liquidation of an investment position. Often these charges are on a sliding scale. Sometimes, these charges are viewed as early withdrawal penalties. They are called backend because they occur at the end of the investment process.A commission or sales fee that is charged upon the redemption of Mutual Fund shares or Variable Annuity contracts. It declines annually, and reaches zero over an extended holding period -- up to eight years -- as described in the prospectus. See also: Front-End Load; Contingent-Deferred Sales Load.

Beta: A mathematical measure of a stock's risk in relation to the overall market (usually as measured by the Standard & Poor's 500 index). The Standard and Poor's 500 Stock Index has a beta coefficient of 1.0. A beta higher than 1.0 indicates that, on average, when the market rises, the stock will rise to a greater extent and when the market falls, the stock will fall to a greater extent. A beta lower than 1.0 indicates that, on average, the stock will move to a lesser extent than the market. The higher the beta, the greater the risk. High-beta stocks are great to own in a Bull Market, but not so fun to hold in a Bear Market.Is a quantitative measure of a security, basket, or funds behavior relative to the market or benchmark. This relationship typically represents the historic price movement of a specific security against the movement in the S&P 500. A beta of 1.35 would indicate that the security move 1.35 times the movement in the S&P or 35% greater variability. The S&P 500 is considered having a beta of 1.00. Betas less than 1.00 are considered less Variable than the market, betas greater than 1.00 are considered more variable than the market and negative betas are considered as inversely related to the market.

Carrying costs: The Variable costs per unit of holding an item in inventory for a specified time period.

Related Terms

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