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Glossary

Valuation

The act of determining the current worth of an asset or company.

Value At Risk (VAR)

Measurement of the financial risk associated with one or more investments over a specific time frame. It estimates the amount of assets needed for collateral to offset losses.

Variance

The measurement of how far each data element in the data set is away from its mean (average value).

Vega

How much the price of an option will change in relation to the volatility of the underlying asset.

Volatility

An assessment of Risk based upon the Standard Deviation of the asset’s Return.