Dictionary
- Basis Point
- One hundredth of a percentage point.
- Basis Risk
- The risk associated with an unexpected widening or narrowing of basis (i.e. the difference between the futures price and the spot price).
- Bear
- Investor acting on the belief that prices or the market will decline. (Opposite of Bull).
- Bear Market
- A market in which prices decline sharply against a background of widespread pessimism.
- Benchmark Error
- Use of an inappropriate proxy for the true market portfolio.