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An Introduction to GAAP Basis Financial Report
An Introduction to GAAP Basis Financial Report

... Recognized when earned as long as Recognized as soon as earned. they are collectible within the period or soon enough afterwards to be used to pay liabilities of the current period (available). Recognized when payments are made. Recognized when payment is due or satisfied with expendable available f ...
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... of which is particularly controversial nor restrictive: (1) markets are frictionless and the “law-of-one-price” holds; (2) the LP has log utility (or more generally, Kreps-Porteus (1978) preferences with relative risk aversion of one); and (3) the return on the LP’s total wealth portfolio equals the ...
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... are “real”, or earnings will grow, the P/E ratios is generally high. M/B: How much investors are willing to pay for $1 of book value equity. When investors believe that the growth prospect of the firm is good, M/B will be high. For each ratio, generally the higher the number, the better. However, hi ...
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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system. It can be defined as ""financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries"". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market. It is also sometimes erroneously referred to as ""systematic risk"".
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