Sentences with phrase «assuming equal risks»

Assuming equal risks, is it better to buy a higher yielding taxable or a lower yielding tax free money market fund?

Not exact matches

To keep our business interests aligned, we assume equal financial risk.

Many finance practitioners assume that the expected market risk premium is equal to the historical market risk premium and to the required market risk premium.

For the relationship between dividends and the equity risk premium, they assume the difference between dividend - price ratio and risk - free rate equals equity risk premium minus expected dividend growth rate.

In the differential inflation approach, using the US dollar risk - free rate as the starting point, you are assuming a global real risk free rate, set equal to that rate embedded in the US treasury bond rate as the base for all local currency risk free rates.

If we assume that the risk - free rate is a 3 - month US Treasury (10 - year US Treasury is also common) and equal to 1.50 %, the portfolio beta is 1.60 (60 % more systematic risk or volatility than the benchmark), the benchmark has returned 10 % annualized, and the portfolio return is 20 %, we have:

Therefore if you wish to drive in South America your insurer will expect you to pay a higher premium than someone who only wishes to drive short journeys in Idaho (assuming that both drivers have otherwise equal risk profiles).