Sentences with phrase «capital revert to the mean»

Not exact matches

This can be seen when an attempted market manipulator gives up or runs out of capital, stops trading, and the market immediately starts to revert to the mean on lesser volume.

pdf) Mauboussin provides a tour de force of data on the tendency of return on invested capital (ROIC) to revert to the mean.

Or perhaps a flood of new investment capital over the last decade or so has produced a lofty ending valuation, which has yet to mean revert, 12 and which would lead the regression to underestimate the true power of valuation for the low beta factor.

In other words, they can not predict which businesses will sustain high returns on capital and which will revert back to the mean, which is the average experience.

If yields revert back to the historical mean, capital losses could be significant.