What is an Empirical Rule? The empirical rule refers to a statistical rule that mentions that all data or information is covered around three standard deviations of the average in a normal distribution. It states that the first standard deviation covers 68% data, the first and second standard deviation covers 95% data, and all the three deviations o...

What is an Offensive Competitive Strategy? An offensive competitive strategy is a form of corporate strategy that involves active and consistent efforts to make and implement changes within the sector. Firms who follow this strategy are the ones who make huge investments in the Research and Development (R&D) and technology-oriented areas for get...

What is the Quantity Theory of Money? According to the quantity theory of money, the general price level of goods and services is proportional to the money supply in an economy. What is the Equation for the Quantity Theory of Money? American economist Irving Fisher proposed the following equation: (M)(V) = (P)(T) M, is money supply V, is velocity of...

What is the Electronic Communication Privacy Act of 1986 (ECPA)? The ECPA protects individuals against unlawful interception of electronic communications by the Federal Government or individuals. Specifically, it restricts the ability to undertake wire taps, computer transmissions, stored electronic communications, and tracing of telephone communica...

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What is a Fund Manager? A fund manager is an individual who takes up the responsibility of implementing a funds investing strategy and controlling the trading activities contained in the portfolio. Funds and portfolios can managed by a single individual, two persons, or possibly three or more persons. The number of managers simply doesn't matter to ...

What is a Coverdell Education Savings Account (ESA)? A Coverdell Education Savings Account is a tax-advantaged trust account for savings to cover educational expenses for beneficiaries. The beneficiaries of the savings account must not be over 18 years, except for some exceptional cases, such as individuals with special needs or disabilities. A Cove...

What is a Halloween Strategy? Halloween strategy refers to a strategy in an investment where the stocks are assumed to do well during the Halloween period. The approach encourages investors to sell securities in the month of May, and keep off, until the month of November. The approach is of the assumption that stocks do well and provide good returns...

What is the ADKAR model? The ADKAR Model is an approach to effective people management during change.  ADKAR is an acronym as follows: Awareness of the need to change. Desire to participate and support the change. Knowledge of how to change (and what the change looks like). Ability to implement the change on a day-to-day basis. Reinforcement to keep...

What is Cash-on-Cash Return?  A cash-on-cash return is a financial metric used to calculate cash income earned on the sum of cash invested in property of a company. It allows the cash flow assessment from the income-generating assets of a company.  Cash on Cash Return = Annual Pre-tax Cash Flow / Total Cash Invested The ratio generated from these ca...