Probability function
A function that assigns a probability to each and every possible outcome. |
Similar financial terms
Probability distributionAlso called a probability function, a function that describes all the values that the random variable can take and the probability associated with each.
Probability density function
The probability function for a continuous random variable.
Probability
The relative likelihood of a particular outcome among all possible outcomes.
Normal probability distribution
A probability distribution for a continuous random variable that is forms a symmetrical bell-shaped curve around the mean.
Base probability of loss
The probability of not achieving a portfolio expected return.
Cumulative probability distribution
A function that shows the probability that the random variable will attain a value less than or equal to each value that the random variable can take on.
Utility function
A utility function is a mathematical expression that assigns a value to all possible choices. In portfolio theory the utility function expresses the preferences of economic entities with respect to perceived risk and expected return.
