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Data Normalization and Standardization

When approaching data for modeling, some standard procedures should be used to prepare the data for modeling: First the data should be filtered, and...

The Problem With Using Beta (β) As A Proxy For Risk

The following is a brief list of definitions for beta from various textbooks and research papers.  Though brief, this is a representative sampling of...

Arithmetic Mean and Standard Deviation

The arithmetic mean (AM) and arithmetic standard deviation (ASD) should only be used for short-term investments that have a maturity of one year or...

Geometric Mean and Standard Deviation

The geometric mean and standard deviation should be used for investments that have a maturity horizon of one year or more because it accounts...