What Is an International Portfolio? An international portfolio is a selection of stocks and other assets that focuses on foreign markets rather than domestic ones. If well designed, an international portfolio gives the investor exposure to emerging and developed markets and provides diversification. Key Takeaways An international portfolio may appeal to the investor who wants
What Is the International Poverty Line? The international poverty line is a monetary threshold under which an individual is considered to be living in poverty. It is calculated by taking the poverty threshold from each country—given the value of the goods needed to sustain one adult—and converting it into dollars. The current international poverty line
What Are International Reserves? International reserves are any kind of reserve funds, which central banks can pass among themselves, internationally. International reserves remain an acceptable form of payment among these banks. Reserves themselves can either be gold or a specific currency, such as the dollar or euro. Many countries also use international reserves to back
What Are InterNotes®? The term InterNotes® refers to a product sold by Insperex, an investment banking firm. Internotes® make corporate debt securities more accessible to retail investors who want investments that align with their investment styles and promise higher yields. The firm promises clear and transparent terms, which include low initial investments, a range of
What Are Interpersonal Skills? Interpersonal skills are the behaviors and tactics a person uses to interact with others effectively. People use interpersonal skills all the time when dealing with others, whether in the workplace, in social situations, or within a family. In the business world, the term generally refers to an employee’s ability to work
What Is Interpolation? Interpolation is a statistical method by which related known values are used to estimate an unknown value or set of values. In investing, interpolation is used to estimate prices or the potential yield of a security. Interpolation is achieved by using other established values that are located in sequence with the unknown
What Are Intersegment Sales? Intersegment sales are the transfer or exchange of goods for monetary compensation from one segment of a company to another within the same company. Intersegment sales exist when a corporation has multiple segments or divisions, and product sales occur between these segments. Disclosures of intersegment sales are typically included in the
What Is Intertemporal Capital Asset Pricing Model (ICAPM)? The Intertemporal Capital Asset Pricing Model (ICAPM) is a consumption-based capital asset pricing model (CCAPM) that assumes investors hedge risky positions. Nobel laureate Robert Merton introduced ICAPM in 1973 as an extension of the capital asset pricing model (CAPM). CAPM is a financial investing model that assists
What Is Intertemporal Choice? Intertemporal choice is an economic term describing how current decisions affect what options become available in the future. Theoretically, by not consuming today, consumption levels could increase significantly in the future, and vice versa. Key Takeaways Intertemporal choice refers to decisions, such as spending habits, made in the near-term that can affect future
What Is Intertemporal Equilibrium? An intertemporal equilibrium is an economic concept that holds that the equilibrium of the economy cannot be adequately analyzed from a single point in time but instead should be analyzed over the long term. According to this concept, households and firms are assumed to make decisions while considering the effect that
