When working with risk premium, systematic risk and nonsystematic risk, the rule is that the expected return on the business operations will always be directly related to the amount
of risk taken on: Lower risk decisions come with lower expected returns, and higher risk decisions come with higher expected returns.
If that's not an option due to an insufficiently long track record, risk - reward metrics, such as the Sharpe ratio, Sortino ratio, or a risk - adjusted alpha measurement should be looked at to view return as it relates to the amount
of risk taken on to achieve it.
Annuities are supposed to lower the amount
of risk you take on in your investing strategy.
As we mentioned, insurance carriers want to reduce the amount
of risk they take on, which is why death by natural causes has a waiting period.
When you buy a universal life policy, if you choose a level death benefit, the insurance company uses your cash value to reduce the amount
of risk it takes on your life.
Life insurance companies need to be selective in the type
of risk they take on.
The amount
of risk they take on by offering you a plan determines how likely they are to keep you as a Wallingford client.
These discrepancies can lead to wide variations in the amount
of risk taken on by home buyers and home inspectors alike.
Not exact matches
People have been conditioned to try to beat the benchmark, but doing that (if it can be done — there's a lot
of evidence to suggest it can't) involves
taking on too much
risk.
«The greatest
risk is not
on the battlefield but in standing up for what's right,» McRaven told the cadets, adding, «The truly great officers know that real victory is achieved when men and women
of character
take professional
risks and challenge the weak - kneed, the faint
of heart, the indecisive, or the bullies.»
The key enterprising skills I used when first starting out are the very same ones I use today: the art
of delegation,
risk -
taking, surrounding yourself with a great team and working
on projects you really believe in.
«In our 20s and 30s, assuming we got a start
on our career, is precisely the time we need to
take the
risk [
of investing in equities],» Diehl says.
Richard Branson is an iconic entrepreneurial figure, a high school drop - out whose knack for seizing opportunities,
taking risks, spotting opportunities, and betting
on himself and the people around him to build businesses in a variety
of industries.
Channel 4 chief creative officer Jay Hunt accused the firm
of flogging the show to the «highest bidder» and «ignoring the
risk» Channel 4
took on it.
Anecdotes
on how the pain
of losing seasons as a rookie built the resilience to
take risks and overcome fear necessary to become a champion.
Stress and the toll it
takes on mental health are occupational
risks of entrepreneurship.
She has learned what it
takes to turn a hunch into a massive business: a clear vision, yes, and the conviction to see it through,
of course, but also an appetite for
risk, a willingness to make changes
on the go and nerves
of highly tempered steel.
Put your butt
on the line and
take big
risks instead
of following the path
of least resistance and falling into a safety net.
It's hard to convince small business owners that if they work extra hard or
take on additional
risk to expand their businesses, that the government is entitled to more than half
of the rewards.
While investors will have to find stocks with higher yields, pay more for them and
take on more
risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more
of every paycheque if they want to keep the same goal for retirement income.
One
of Canada's most innovative restauranteurs
on ambition, the importance
of collaboration, and
taking the right
risks
If you go to an Ivy League school, «there are prestigious companies that will
take a chance
on you even if you majored in classics or medieval history,» he writes, but «the problem is that while we need lots and lots
of people with humanities and social science backgrounds, in today's increasingly anti-intellectual climate, majoring in philosophy is becoming a
risk that fewer and fewer people can afford to
take.»
In January, the Monetary Authority
of Singapore urged the public «to act with extreme caution and understand the significant
risks they
take on if they choose to invest in cryptocurrencies.»
Over its lifetime, the NES sold nearly 62 million units and was able to break out from the stable
of other companies that were willing to
take a
risk on the home console market.
Comments: «In 2013, it will likely be the change in valuation that drives most
of the performance
of stocks, and the sentiment shift and willingness to
take on risk reflected in that movement will be meaningful for bonds as well.
Convertible bonds are securities that pay interest, but give the bondholders the right to convert them to equity shares; they're basically a way to bet
on the growth potential
of a company without
taking the
risk of buying common shares.
One
of the tools we use in trading is the «
risk - reward ratio» — basically, how much
risk you're willing to
take on for how much potential reward.
The NTSB and the FAA must get to the bottom
of what happened
on the Southwest plane and
take steps to ensure it won't happen again, which has been a key part
of the formula for reducing
risks in recent decades, said Matthews and Wallace.
They work crazy hours, they
take a lot
of risks, they have to put their name and reputation
on the line every day - and much more.
«
On the other hand, I wouldn't mind offering equity as a reward for
taking risk out
of the business by bringing in three or four more customers and diversifying the customer base.
Whether it's free videos, songs or apps, if it's not offered from a legitimate source such as the iTunes store or Google Play, people are
taking a huge
risk by saving this kind
of content
on their machines.
To grow, King says, «you have to
take on more
risk, like
taking on more debt or using more
of your own money.
What we were wondering was, what
on Earth made either
of you want to
take those kinds
of risks?»
Wall Street stock futures are lower again this morning, with markets finally
taking on board the
risks of a Greek default and / or exit from the Eurozone.
The dilemma facing the boards at Microsoft, Apple or any board
of directors
on the departure
of an innovative CEO is strategic: Do we want still want to be a innovative,
risk taking company?
«As hackers devise more advanced and less recognizable threats, organizations that continue to settle for cybersecurity strategies that rely
on a «feeling»
of security are
taking even greater
risks in the coming year.»
Still, it's a smart move by the Times, especially as Chef'd
takes on much
of the operating
risk.
As the traders battle for the best portfolio
of the year, FMHR trader Jim Lebenthal
takes risk off the table, and Stephanie Link, TIAA Global Asset Management, is focusing
on quality.
In a separate hearing
on ICOs in Congress last week, Mike Lempres, chief legal and
risk officer for cryptocurrency exchange Coinbase, said the company does not trade ICO tokens because it «can not
take the
risk of inadvertently trading an asset that is later found to be a security.»
Otherwise, there's no point in
taking on the additional
risk — not to mention the added expense —
of active management.
«Gold is stuck between $ 1,238 - $ 1,260 with the
risk to skewed to downside based
on rising expected interest rates and failure to break higher which has left it vulnerable to profit -
taking in the short term,» said Ole Hansen, the head
of commodity strategy at Saxo Bank.
Both Ruiz and Cortazzo say they are using variable annuities sparingly with clients at this point, but for investors who are uncomfortable
taking on a lot
of market
risk, annuities can be a solution.
But Alex Jurshevski, founder
of Toronto's Recovery Partners, a
risk - management advisory firm, thinks the answer lies with Thatcher — who, he says, significantly watered down union mentality in the U.K., something that has not
taken place
on the Continent.
The executive explained the worth
of knowing what an individual investor wants based
on what he needs out
of a stock and the
risks he is willing to
take while investing.
Argued another: «Public - sector plans should be converted to defined - contribution plans to relieve those
of us
on our own private - sector defined - contributions plans from the burden
of taking the investment
risk for the public sector.»
Ron Carson, a CFP and CEO
of Carson Wealth Management Group, thinks conservative investors should not
take on credit
risk given the dicey economy.
A cybersecurity expert says it could
take a year to secure the
risk of «high exposures»
of personal information
on the federal Obamacare online exchange.
The company is selling a thing (the kit) by saying it can provide «health reports
on 254 diseases and conditions,» including categories such as «carrier status,» «health
risks,» and «drug response,» and specifically as a «first step in prevention» that enables users to «
take steps toward mitigating serious diseases» such as diabetes, coronary heart disease, and breast cancer...» Most
of the uses «listed
on your website, a list that has grown over time,» the FDA writes, «are medical device uses [for the] Personal Genome Service.»
The same way that a bank deemed too big to fail might
take greater
risks — having the knowledge that its most severe mistakes will be underwritten by somebody else — so, too, can signing your name
on a marriage licence offer a sort
of insurance policy that changes your behaviour.
One reason workers are willing to
take on risky jobs is because they are paid a compensating wage differential when the
risk of death is high.