Meaning CURRENCY OVERVALUATION: Applies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity
More terms such as Currency overvaluation in Dictionary C.
- Definition Capital Asset Pricing Model (CAPM):
- Examples that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only risk that is priced by rational investors currency overvaluation definition.
- Definition Confidence Indicator:
- Examples A measure of investors' faith in the economy and the securities market. A low or deteriorating level of confidence is considered by many technical analysts as a bearish sign currency overvaluation explain.
- Definition Counter Trade:
- Examples The exchange of goods for other goods rather than for cash; barter currency overvaluation what is.
- Definition Capital Account:
- Examples Net result of public and private international investment and lending activities currency overvaluation meaning.
- Definition Capital Market Line (CML):
- Examples every combination of the risk-free asset and the market portfolio. The line represents the risk premium you earn for taking on extra risk. Defined by the capital asset pricing model currency overvaluation abbreviation.
