The Morningstar Dictionary: Real returns
When looking at returns in the context of what investments will be worth over time, it's essential to consider inflation
The Morningstar Dictionary: R-Squared
This TMP measure helps gauge the relevance of the benchmark used to calculate Alpha and Beta
The Morningstar Dictionary: Alpha
A risk-adjusted performance statistic used to evaluate how good a job an investment manager has done
The Morningstar Dictionary: Beta
Beta gives you a sense of how volatile an investment has been, compared to a benchmark
The Morningstar Dictionary: Economic cycle
Explaining the delicate balancing act between economic growth and inflation
The Morningstar Dictionary: Market cap weighting
The traditional method of passive investing is the least expensive to implement. How does it work?
The Morningstar Dictionary - Sharpe ratio
The most widely used method for calculating a fund's historical risk-adjusted performance
The Morningstar Dictionary: Standard Deviation
This popular measure gives investors a sense of how volatile a fund's performance has been
The Morningstar Dictionary: Currency hedging
Eliminating currency effects from returns exposes you to the pure performance of your fund's holdings
The Morningstar Dictionary - Correlation
This key measure helps you find investments that don't move in lock-step, allowing you to build a diversified portfolio
The Morningstar Dictionary: Stock price
Analysts assess the value of a stock based on what they expect it will earn in the future
The Morningstar Dictionary: Active and passive
The differences between the two investment approaches have blurred recently
The Morningstar Dictionary: Strategic vs. tactical
Whether portfolio moves are temporary or long-term can help clarify the issue
The Morningstar Dictionary: Market capitalization
It's a fancy way to describe the market value of a company, but what does it really mean?
The Morningstar Dictionary: Growth and value
These two investment styles can complement each other in a portfolio
The Morningstar Dictionary: Top-down vs. bottom-up
Morningstar's Ben Johnson breaks down the often-misunderstood difference between top-down and bottom-up approaches to investing
