Terms

Global custody

• CSD - Central securities depository
  • Functions listed in wiki are interesting
• DTC - Depository trust & clearing corporation

For Funds (Mutual funds / Exchange traded funds)

• NAV - (Net Asset Value)[http://www.investopedia.com/video/play/net-asset-value/]
  • video explaining...

General

• Standard deviation
  • or variance, so higher the SD more risky it is

For example, if the annual rate of return of a security over five terms

Given monthly returns of 2%, 7.5%, 1%, 6%, 1.5%
then the average is 3.6%

(3.6 - 2)^2 = 2.56
(3.6 - 7.5)^2 = 15.21
(3.6 - 1)^2 = 6.76
(3.6 - 6)^2 = 5.76
(3.6 - 1.5)^2 = 4.41

Sum = 34.7 / (5 terms - 1) = 8.675
sqrt(8.675) = 2.9 (standard deviation)