We broadly define the short - volatility trade as any financial strategy that relies on the assumption of market stability to generate returns, while using volatility itself as an
input for risk taking.
The main purpose of a factor rate is to compensate the lenders
for the risk they take by providing you quick cash without any collateral or personal guarantee.
Our ability to be vulnerable with one another supports us in developing high trust ties, which creates a supportive
condition for risk taking to occur.
We set the hypotheses that are straightforward and predictive because there is absolutely no
reward for risk taking.
You pay money factor to compensate the leasing company for using its car and
for the risk it takes by trusting that you will make all of your payments.
Sometimes, an angel investor would demand for ten times his invested capital as
compensation for risks taken and in the event that the business fails, there is usually a defined exit strategy to help the angel investor recoup his investments.
1) Investors expect to be compensated
for the risk they take in making an investment that is more risky than a high interest savings account (this would bring the price that they are willing to pay DOWN), and 2) the price goes up if the company's earnings are expected to increase.
The movie wouldn't be nearly as enjoyable if it were
n't for the risks it takes thematically, but none of that would matter without its incredible cast.
Good judgement and diversification amongst many borrowers will likely make an investment [at NMT 5 % of total portfolio] in Lending Club reasonably
profitable for the risk taken.
I'm always
game for risk taking in the kitchen so I used a stick of cold butter cut into about 8 pieces and swapped Rapadura in for the coconut sugar.
Often these early games will be very tactically driven, but with 16 teams advancing (out of 24), there will be more
room for risk taking.
8 One theory suggests that male geniuses are unusually endowed with
enthusiasm for risk taking, which is notoriously testosterone - linked.
The price of Corp A's bond will fall until investors, as a group, think the $ 50 per year in interest Corp A is paying to its bond owners compensates them
fairly for the risk they take by owning the bond.
The credit cycle gets long in the tooth, and credit spreads / yields tighten to levels that are far too
low for the risk taken on.
This means that despite a 10 % outperformance over the benchmark (20 % vs. 10 %), a more accurate estimation of the portfolio's alpha when
adjusting for the risk taken on by the portfolio is about half that.
The Souls series and its offshoots — Demon's Souls, the Dark Souls trilogy, and Bloodborne — are huge outliers in the
industry for the risk they take by insisting, fiercely, that you earn not only your completion of the games but your appreciation of them.
[18] If the insured desires
coverage for a risk taken out by an exclusion on the standard form, the insured can sometimes pay an additional premium for an endorsement to the policy that overrides the exclusion.
I like mezzanine and preferred equity because the value decline (for most assets and markets) is behind us and there are relatively good returns
for the risk taken going forward.
Writing new stories for old enclaves isn't the work of just a few real estate pros with a
zest for risk taking.
As Northern Ireland Secretary, Mr Hain was the first senior Labour figure to complain about
rewards for risk taking in an interview in this newspaper in February 2007.
I agree; there will be continued problems in the synthetic and securitized debt markets, but if you want to be rewarded for risk here, equities offer reasonable
compensation for the risks taken.
Levy became
known for his risk taking and his exceptional eye, and art museums in and around New York turned to him to add to their growing collections of contemporary art.
After this review, we will explain how IFA has used such research to formulate its investment policy, and used it to create low - cost portfolios that deliver the highest expected
return for the risk taken; then why it is our advice that those responsible for investing public funds should make it a cornerstone of the investment plans.
Society bestows these rights to allow inventors to recoup the investments they made and to reward
them for the risks they took to get their ideas into the marketplace.
So, despite our rational desire to get a return
for the risks we take, we tend to value something we own higher than the price we'd normally be prepared to pay for it.