CFA® glossary: J

5 terms beginning with J.

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J-curve

The dip in a private equity fund's reported return in its early years. Fees are charged from day one and value takes years, so it is negative by construction. Where it appears →

January effect

Shares, especially small ones, historically earning unusually high returns early in January, often linked to year-end selling for tax losses. It has largely faded since being documented.

Joint probability

The probability that two events both happen: the chance of one multiplied by the chance of the other given the first. It reduces to a simple product only when the events are independent.

Joint venture

A separate entity controlled jointly by two or more partners who share its costs, risks and returns. Each venturer usually accounts for its share using the equity method. Where it appears →

Justified multiple

The multiple a share warrants given its own fundamentals — for a forward P/E, the payout ratio over the required return less growth. The benchmark the market multiple is tested against. Where it appears →