Asymmetric payoff | Glossary

Definition :

This is an function graph that shows a positive asymmetric payoff. It may also be a negative asymmetric payoff, but we mostly use the term “asymmetric payoff” to speak of positive asymmetry Or  The set of possible results of an investment strategy where the upside potential is greater than the downside risk. Derivative contracts called “options” are the most common instrument with asymmetric payoff characteristics. Hedge funds that employ this kind of investment strategy include Universal Investments, A North Investments, Pershing Square Capital Management, and others.

Click here to get such more insights

Further Reading:

Product Development Flow by Donald G Reinertsen.

 

Theory of Constraints | Glossary

Definition :

Theory of Constraints is an organizational modification technique that’s focussed on profit improvement. the main concept of TOC is that each organization should have a minimum of one constraint. A constraint is any factor that limits the organization from getting additional of whatever it strives for, that is usually profit. The Goal focuses on constraints as bottleneck processes in a job-shop manufacturing organization. However, several non-manufacturing constraints exist, like market demand, or a sales department’s ability to translate market demand into orders.

Click here to get such more insights

Further Reading:

Large Scale-Scrum by Craig Larman and Bas Vodde.