Glossary

Quick reference items are fully complete for all Level I CFA® topics.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Key rate duration

Sensitivity of the value of a bond to changes in the spot rate for a specific maturity, holding other spot rates constant.

Keynesian

The Keynesian economists, while agreeing that Neoclassical theory has its merit, argue that it can take a very long time for the market to adjust wages and go back to full employment.  This is because wages are inherently “downward sticky”, that is, many will choose to remain unemployed rather than to accept a pay cut.   The Keynesians also believe ...

Kondratieff wave

A 54-year long economic cycle postulated by Nikolai Kondratieff.

Kurtosis

The statistical measure that indicates the combined weight of the tails of a distribution relative to the rest of the distribution. See also: Platykurtic distribution, Mesokurtic distribution, Leptokurtic distribution, Sample kurtosis, Excess kurtosis