What is Radner Equilibrium? The Radner Equilibrium is an extension of Arrow-Debreu general equilibrium that explores the condition of competitive equilibrium under uncertainty to explain the real world existence of financial institutions and markets, such as money and stock exchanges. Radner Equilibrium was first introduced by American economist Roy Radner in a 1968 paper and
Rafael Miranda Robredo served as CEO of Endesa, one of Spain’s largest electric utilities. He led the company during Spain’s deregulation of the electricity sector. Key Takeaways Rafael Miranda Robredo is the former CEO of Spanish electric utility Endesa.After the deregulation of the electricity market sector, Robredo acquired other electric companies and expanded into Latin
What Is a Raider? A raider is an investor that seeks to squeeze out a quick profit from failing and undervalued companies. Armed with deep pockets and plenty of financial backing, they buy big enough stakes in these companies to give them significant voting rights and then use this influence to take new measures to
What Is a Rally? A rally is a period of sustained increases in the prices of stocks, bonds, or related indexes. A rally usually involves rapid or substantial upside moves over a relatively short period of time. This type of price movement can happen during either a bull or a bear market, when it is
What Is a RAM Scraping Attack? A RAM scraping attack is an intrusion into the random access memory (RAM) of a retail sales terminal in order to steal consumer credit card information. This type of cybercrime has plagued retailers and their customers since at least 2008. RAM scraping is also called a point-of-sale (POS) attack
What Is Research and Development (R&D)? Research and development (R&D) includes activities that companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. The goal is typically to take new products and services to market and add to the company’s bottom line. Key Takeaways R&D
What Is a Random Variable? A random variable is a variable whose value is unknown or a function that assigns values to each of an experiment’s outcomes. Random variables are often designated by letters and can be classified as discrete, which are variables that have specific values, or continuous, which are variables that can have
What Is the Random Walk Theory? Random walk theory suggests that changes in stock prices have the same distribution and are independent of each other. Therefore, it assumes the past movement or trend of a stock price or market cannot be used to predict its future movement. In short, random walk theory proclaims that stocks
What Is a Range Accrual? A range accrual is a structured product based on an underlying index whose returns are maximized if the index stays within the investor’s defined range. Commonly referred to as a range accrual note, it is a type of financial derivative that offers investors the potential to earn above-average returns by
What Is a Range Forward Contract? A range forward contract is a zero-cost forward contract that creates a range of exercise prices through two derivative market positions. A range forward contract is constructed so that it provides protection against adverse exchange rate movements while retaining some upside potential to capitalize on favorable currency fluctuations. Range Forward Contract Explained Range forward contracts
