Sentences with phrase «return equals the risk»

Not exact matches

To offset the significant risk they face when funding unproven startups, investors often start with a simplistic expectation that they should have the potential to see a return on their investment equal to 10 times what they put up.

Equal - weight and volatility - weighted allocations are two common factor allocation frameworks Risk - return ratios are not higher with volatility - weighted allocations Different reasons can explain the superiority of equal - weight allocations INTRODUCTION In July we published a research report «FaEqual - weight and volatility - weighted allocations are two common factor allocation frameworks Risk - return ratios are not higher with volatility - weighted allocations Different reasons can explain the superiority of equal - weight allocations INTRODUCTION In July we published a research report «Faequal - weight allocations INTRODUCTION In July we published a research report «Factors

Rupal believes her team's best risk - adjusted returns have come from marching to its own tune and applying an investment process that pays equal attention to both risk and return management.

It's risky to invest too much in bonds or other low risk assets, because those equal to lower returns.»

Investment Strategy: Roth IRAs: How to Optimize Yours From Dollars to Millions: How to Invest in Stocks 6 Smart Investment Strategies for Superior Returns Contrarian Investing: How to Stay a Step Ahead Discounted Cash Flow Analysis: A Comprehensive Overview International Investing: Be Aware of This Common Pitfall Covered Calls: How to Get a Ton of Investment Income Selling Put Options: How to Get Paid for Being Patient Index Funds: Yes, There Are Some Downsides Thrift Savings Plan (TSP): Fund Overview Risk vs Volatility: How to Profit from the Difference The Shiller PE (CAPE) Ratio: Current Market Valuations How to Invest Money Intelligently Equal Weighted Index Funds: Pros and Cons How to Generate Investment Income from Precious Metals 5 Rock - Solid Blue Chip Dividend Stocks Share Buybacks: The Good, The Bad, And The Ugly

The idea of indexing is to produce returns that are good enough; returns equal to a benchmark that fits an investor's risk tolerance.

The CAPM model says that the expected return of a security or a portfolio equals the rate on a risk - free security plus a risk premium.

When combined into a single portfolio the two strategies have led to even better risk - adjusted returns (as gauged by Sharpe Ratio) even when compared to an equal - weight SPY / TLT portfolio.

An aggressive stock is a higher - risk investment that can potentially produce higher returns than more conservative stocks, but also has equal potential for bigger losses.

; Reckless Bets; Risk Adjusted Returns; Keep an Eye on Your Objective; Remember ElLobo's Trick; Why Dividends Are Better; The Candyland Hypothesis; Equal Weighting versus Capitalization Weighting; Money on the Sidelines; Mental Exercise; Dangerous Market; Characterizing ADVDX; Adjustments for Taxes; Income Streams; Not Simply Total Return; Something Subtle; Don't Get Caught; Intrinsic Value; Primitive Monte Carlo Simulations.

Impact investments generate returns that range from below market (sometimes called concessionary) to returns that can equal or exceed the market's, but with risk factors that differ from the market's.

Re = Rf + β * ERP where Re = expected return on equity Rf = risk - free rate β = beta coefficient, by definition equal to 1 for the equity market

For nearly every target rate of return, a diversified portfolio of minimally - correlated investments can be constructed that will be lower risk than one investment with equal expected return.

Remember, risk is always equal to reward, so the less risky the portfolio, the less it will return over time.

(4) Huge risk that doesn't match the rate of return: I'll explain more below, but the tax drag, cash drag, and withdrawal fee all reduces your rate of return by so much that I can't see anyway that your risk equals the rate of return.

The US ETF will replicate the returns of the Scientific Beta United States Multi-Beta Multi-Strategy Equal Risk Contribution Index (scientific!

They calculate alphas for each anomaly by using the specified linear model risk factors to adjust gross monthly returns from a portfolio that is long (short) the value - weighted or equal - weighted tenth of stocks that are «good» («bad») according to that anomaly, reforming the portfolio annually or monthly depending on anomaly input frequency.

To beat the market means that an investor has succeeded on two levels: a higher return and equal or less risk than the market.

Beta is an input into the capital asset pricing model (CAPM) where the expected return of an asset is calculated based on its beta (ß), returns expectations, and a risk - free rate equal to the following:

They find that total return of the equal - weighted portfolio exceeds that of the value - and price - weighted because the equal - weighted portfolio has both a higher return for bearing systematic risk and a higher alpha measured using the four - factor model.

The researchers find find that the equal - weighted portfolio with monthly rebalancing outperforms the value - and price - weighted portfolios in terms of total mean return, four factor alpha, Sharpe ratio, and certainty - equivalent return, even though the equal - weighted portfolio has greater portfolio risk.

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:

«This equates to more risk, and more risk should mean a better return, all things being equal.»

Higher risk should equal higher return, but high risk means a higher chance of losing all or part of your investment.

Here's the way I look at it: if you've already incurred the debt, an extra debt repayment is an investment an after - tax and almost risk - free return equal to the interest rate on your debt.

Investors have the option to either a) hold the ETFs until maturity, in which case the principal amount invested will be returned on the date of maturity plus regular coupon payments or, b) liquidate their positions before the maturity date if the need for cash arises, in which case they will be subject to receive payments equal to the current market price of the shares (which is subject to interest rate risk) times the number of shares bought plus any coupon due.

Because a bond mutual fund is just a collection of bonds, at any given time its expected return and risk are exactly equal to those of the underlying assets it holds.

Each selected fund must deliver returns more or less equal to those of its benchmark index on a risk - adjusted basis for the same period.

Of course no savings account pays anywhere near 3 % today, but if you have student loans, think of them as risk - free investment opportunities with a guaranteed rate of return equal to the interest rate you're paying.

If there is no risk — zero standard deviation — your returns will equal your expected returns.

Rupal believes her team's best risk - adjusted returns have come from marching to its own tune and applying an investment process that pays equal attention to both risk and return management.

In our trading program we might only equal the market return, but do so with less risk.

Then you have a scenario where the upside and downside are essentially equal and even if you assign a 60 % probablility to the upside the risk / return tradeoff isn't there.

It offers death risk coverage and returns as a percentage of sum assured at equal intervals.

Free look In the event the policyholder disagrees with any of the terms and conditions of the policy, he / she may return the policy to the Company within 15 days of its receipt for cancellation, stating his / her objections in which case the company will refund an amount equal to the non allocated premium plus the charges levied by cancellation of units plus fund value as on the date of receipt of the free look cancellation request less proportionate risk premium for the period the company has been on risk, less the expenses incurred by the company on medical examination of the life assured and less the stamp duty charges..

In our opinion discounted properties with positive cash flow represent the best property investment opportunities with the least risk and highest return potential all else being equal.

Thus, if local market conditions are good, that is, if the vacancy rate is low, demand is growing faster than supply, and rents are rising, then investors will perceive that the risk of property ownership is lower and the required rate of return, and, hence the discount rate, will be lower, all else being equal.