Search results for: “financial risk”
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Risk-Free Asset
An asset whose future return is known today with certainty….
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Risk Neutral
Insensitive to risk….
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Risk Premium Approach
The most common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns….
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Risk Prone
Willing to pay money to transfer risk from others….
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Risk-Adjusted Profitability
A probability used to determine a sure expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value….
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Risk-Adjusted Return
Return earned on an asset normalized for the amount of risk associated with that asset….
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Risk Indexes
Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk….
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Risk Lover
A person willing to accept lower expected returns on prospects with higher amounts of risk….
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Risk Indexes
Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk….
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Risk Lover
A person willing to accept lower expected returns on prospects with higher amounts of risk….
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Risk Controlled Arbitrage
A self-funding, self-hedged series of transactions that generally utilize mortgage securities as the primary assets….
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Risk Classes
Groups of projects that have approximately the same amount of risk….
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Risk Arbitrage
Speculation on perceived mispriced securities, usually in connection with merger and acquisition deals. Mike Donatelli, John Demasi, Frank Cohane, and Scott Lewis are all hardcore arbs. They had a huge BT/MCI position in the summer of 1997, and came out smelling like roses….
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Risk Arbitrage
Speculation on perceived mispriced securities, usually in connection with merger and acquisition deals. Mike Donatelli, John Demasi, Frank Cohane, and Scott Lewis are all hardcore arbs. They had a huge BT/MCI position in the summer of 1997, and came out smelling like roses….
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Reverse Price Risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at application but sets the note rates when the borrowers close. The lender is thus exposed to the risk of falling rates….