The Risk Limited Glossary
Z:
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Z - the Commodity Futures Symbol which represents the December Delivery Month.
Z Bond - an Accrual Bond.
Z Score - a statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. The terminology is also used to refer to the output from a credit-strength test that gauges the likelihood of bankruptcy, more precisely known as the Altman Z Score.
Zero-Beta Portfolio - a portfolio designed to have zero systematic risk, similar to the risk-free asset, that is, having a Beta of zero.
Zero Cost Collar - a transaction which has little or zero cash outlay for the initiating party, and provides price protection in a range between a floor and ceiling.
Zero Coupon - refers to a debt instrument that does not make coupon payments, but, rather, is issued at a deep discount to par and redeemed at par at maturity.
Zero-One Integer Programming - an analytical methodology that can be used to determine the solution to a capital rationing problem.
Zero-Sum Game - a condition or type of game wherein one participant can gain only at the expense of another player.
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