What Is a Mean-Variance Analysis? Mean-variance analysis is the process of weighing risk, expressed as variance, against expected return. Investors use mean-variance analysis to make investment decisions. Investors weigh how much risk they are willing to take on in exchange for different levels of reward. Mean-variance analysis allows investors to find the biggest reward at a
What Is a Medallion Signature Guarantee? A medallion signature guarantee is one of several special certification stamps that guarantees a signature that authorizes a transfer of securities is authentic. Parties will generally require a medallion signature guarantee when an owner wants to sell or transfer securities—such as stocks or bonds—held in physical certificate form. If
What Is the Media Effect? The media effect describes how certain stories that the news or media publishes may influence and/or amplify current price trends in a particular asset class, sector, or overall market. If this theory holds true, after reading a headline or article, investors or borrowers tend to be influenced by headlines and
What Is the Median? The median is the middle number in a sorted, ascending or descending list of numbers and can be more descriptive of that data set than the average. It is the point above and below which half (50%) the observed data falls, and so represents the midpoint of the data. The median
What Is the Medical Cost Ratio (MCR)? Medical cost ratio (MCR), also referred to as medical loss ratio, is a metric used in the private health insurance industry. The ratio is calculated by dividing total medical expenses paid by an insurer by the total insurance premiums it collected. A lower ratio likely indicates higher profitability
What Are Medical Expenses? Medical expenses are any costs incurred in the prevention or treatment of injury or disease. Medical expenses include health and dental insurance premiums, doctor and hospital visits, co-pays, prescription and over-the-counter drugs, glasses and contacts, crutches, and wheelchairs, to name a few. Medical expenses that are not reimbursed are deductible within
What Is Medical Identity Theft? Medical identity theft involves the fraudulent use of a person’s health insurance information to receive reimbursement for healthcare services provided to an individual not covered by the policy. Both patients and providers may commit fraudulent medical claims, depending on circumstances. Other times, the information is stolen by employees or external hackers
What Is Medical Payments Coverage (MedPay)? Medical payments coverage is an add-on to an auto insurance policy that covers expenses related to vehicular accidents. Also called “MedPay,” it covers you and any passengers in your vehicle, any pedestrians you may injure, and you—if you are riding as a passenger in another vehicle or are injured by a vehicle
What Is a Medical Savings Account (MSA)? The term medical savings account can refer to any of several tax-benefitted arrangements enacted since the early 1990s. However, it also refers to a specific type of medical savings account (MSA) that was authorized and regulated under the Internal Revenue Code in the early 1990s. This type of
What Is Medical Underwriting? Medical underwriting is the process of evaluating an application for health insurance coverage by examining the applicant’s medical history. The price of coverage is determined by the risk factors of the applicant. Depending on the insurance company’s policies and on federal and state regulations, medical underwriting for high-risk candidates may lead to
