Sentences with phrase «given level of risk»

Historical stock market data provide investors with a powerful set of tools for constructing portfolios that can maximize expected returns at given levels of risk.

It represents the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta (see definition of Beta).

Or if you have something like a 15 % cap rate... that's not necessarily outstanding given the level of risk (uncertain vacancies) involved in a hotel.

Alpha is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta.

The returns don't look that great compared to other investors like John Malone (LCAPA / LINTA / LSTZA), Robert Cudney (CVE: NFD.A), Warren Buffet, etc. especially given the level of risk.

«E (Sell) Very Weak» rating means the fund has significantly underperformed most other funds given the level of risk in its underlying investments, resulting in a very weak risk - adjusted performance.

Finally, given the level of the risk characteristics associated with CXO positions, the background screening should be deep and comprehensive.

What results is an upward shift in the efficient frontier, providing an enhanced return for a given level of risk, or conversely, a similar return at a lower risk profile.

Based on modern portfolio theory and the efficient frontier, return is maximized for a given level of risk through asset class diversification.

However, within a given portfolio, an investor can maximize return for a given level of risk by diversifying among several uncorrelated asset classes.

Shown below, the efficient frontier is a set of optimal investment portfolios that offer the highest level of return for a given level of risk.

Taken in this context, venture capital investing, while in isolation a risky investment style, can provide enhanced returns at a given level of risk.

The efficient frontier is made of portfolios that offer the greatest expected returns for a given level of risk... or vice versa, the lowest risk for a given level of expected returns.

With MPT, investors create portfolios to maximize the expected return based on a given level of risk.

Prices move inversely proportional to shifts in economic uncertainty so that expected returns remain essentially the same for a given level of risk.

Required yield is the minimum acceptable return that investors demand as compensation for accepting a given level of risk.

Down the line we may again see value investments posting near or double - digit real returns but as things stand today we should pick assets in the distribution phase that give the best return for a given level of risk.

The efficient frontier is a curve which represents all the points where for a given level of risk (as measured by standard deviation) of a portfolio you are achieving the optimal rate of return.

At Scalable Capital we use diversification as a tool to help us achieve the maximum possible expected return for a given level of risk.

Any portfolio that lies on the upper part of the curve is efficient: It gives the maximum expected return for a given level of risk.

Splitters point to academic research that shows that a portfolio of multiple uncorrelated asset classes has usually generated higher returns for a given level of risk, or similar returns with lower risk (i.e., higher risk - adjusted returns), and sometimes even higher returns with lower risk.

In a nutshell, the target allocations are keyed to maximize expected return based on a given level of risk.

The earlier study, titled «Fintech Lending: Financial Inclusion, Risk Pricing, and Alternative Information,» found that for a given level of risk, Lending Club charged borrowers lower prices than bank credit cards.

Higher Sharpe ratios indicate higher returns for a given level of risk taken.

We use the tools of Modern Portfolio Theory to design the optimal portfolio for a given level of risk.

Determine the appropriate level of risk for your portfolio and utilize appropriate asset allocations for the highest return given your level of risk

So rather than engage in a guessing game, you arrive at a blend of stocks and bonds that (aside from occasional rebalancing) you can stick with through good markets and bad, and that can deliver solid returns given the level of risk you're willing to take.

Over the long term, this allows your portfolio to generate a higher return for a given level of risk.

Select subset of mutual funds from investment universe to construct a portfolio which seeks to optimize dividend income for a given level of risk

We can then construct a portfolio that maximizes expected return for a given level of risk, or minimizes risk for a given level of required return.

The first two are then plotted on a graph to create the «efficient frontier»: a line that denotes the maximum return possible for a given portfolio at a given level of risk.

MPT seeks to identify a portfolio allocation designed to offer the highest potential reward with the lowest amount of risk possible for any given level of risk, using broad diversification and historical data about asset class price fluctuation for this purpose.

REIT returns tend to «zig» when those of other investments «zag,» helping to reduce a portfolio's overall volatility and improve its returns for a given level of risk.

An efficient portfolio would produce the highest level of return for a given level of risk..»

Modern Portfolio Theory attempts to construct a portfolio that maximizes the potential for return at each given level of risk.

The term you're looking for is efficient frontier, the optimal rate of return for a given level of risk.

The goal is to be on the efficient frontier, meaning that for the given level of risk, you're receiving the greatest possible rate of return (reward).