Help

The Zacks Investment Management Resource Library is designed to provide individual investors like you with high-quality, informative and straightforward articles and guides about investing and finance. If you find an article informative and would like to receive additional information about that topic, or more information about Zacks, then we encourage you to click here. Or, simply call us at 800-245-2934 to speak with one of our investment professionals.

Learn more about investing

Take a look at the education section of this website orlearn the terms you need to know in our glossary to the right.

Find applications here

Sign up for E-Delivery

Sign up for Zacks FREE monthly commentary

Need help using the website? Call Shareholder Services at 800.767.3771

Other questions? Call Shareholder Services at 800.767.3771 or email us at
info@zacksfunds.com

Glossary

Alpha is a measure of the portfolio's risk adjusted performance. When compared to the portfolio's beta, a positive alpha indicates better-than-expected portfolio performance and a negative alpha worse than-expected portfolio performance.

Beta is a measure of the volatility of a portfolio relative to the overall market. A beta less than 1.0 indicates lower risk than the market; a beta greater than 1.0 indicates higher risk than the market. It is most reliable as a risk measure when the return fl uctuations of the portfolio are highly correlated with the return fl uctuations of the index chosen to represent the market.

Market capitalization is the value of a corporation as determined by the market price of its issued and outstanding common stock. It is calculated by multiplying the number of outstanding shares by the current market price of a share.

Price/book ratio (P/B) is the ratio of a stock's price to its book value per share.

Price/earnings ratio (P/E) is the price of a stock divided by its earnings per share.

R2 represents the percentage of the portfolio's movements that can be explained by the general movements of the market. Index portfolios will tend to have values very close to 100.

Standard deviation is an indicator of the portfolio's total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio's standard deviation, the greater the portfolio's volatility.

Turnover ratio is the percentage of a portfolio's assets that have changed over the course of a year. It is calculated by dividing the average assets during the period by the lesser of the value of purchases and the value of sales during the same period.