Caricature of a tramp. A vagrant or a vagabond is a person, often in poverty, who wanders from place to place without a home or regular employment or income. Other synonyms include tramp, hobo, and drifter.
Hedge Ratio. 1. A ratio of the value of the proportion of a position that is hedged to the value of the entire position. A hedge ratio shows how exposed an investment is to risk. For example, if a hedge ratio is .65, then 65% of the investment is protected from risk, while 35% remains exposed. 2. A ratio of the value of a futures contract to the value of the underlying asset. This is used to identify and minimize risk in the contract.
DEFINITION of 'Retention Ratio'. The proportion of earnings kept back in the business as retained earnings. The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends.