Sentences with phrase «return for taking on the risk»

Investors rightfully demand a greater return for taking on the risk of owning stocks.
The success of the pending bond sale and the yields investors are willing to accept in return for the taking on the risk of lending their money to Puerto Rico will be very telling.

Not exact matches

The company must have long - term potential; it needs some sort of sustainable competitive advantage that will keep it in business for years to come; he wants double - digit returns — «Why bother buying a business if you're not getting at least that for taking on the risk of owning a company?»
«For example, a bond fund may borrow and take on leverage in order to show a higher return but has significantly higher risk than a retiree may want in an income portfolio.»
It doesn't take a neurosurgeon to know that people prefer a sure investment return to an uncertain one — we want to get paid for taking on any extra risk.
For example, if you're comfortable taking on more risk in exchange for potentially higher returns, your portfolio might be weighted with more stocks than bonFor example, if you're comfortable taking on more risk in exchange for potentially higher returns, your portfolio might be weighted with more stocks than bonfor potentially higher returns, your portfolio might be weighted with more stocks than bonds.
Market - makers must be willing to take on risk by building inventory positions (see Box 1 for a discussion of the economics of market - making).4 As with other types of financial intermediation, willingness to build positions depends on assessments of risk and return.
As you move up the risk ladder you take on greater price volatility in exchange for potentially higher long - term returns.
As a result of the likely move into negative real returns on cash, more cash savers will move into UK government bonds (gilts), more gilt owners will swap them for corporate bonds, some more will move into equities, and a sliver of risk - takers will use cheaper financing to start businesses or take out loans to build property.
Our return expectations across most asset classes are at post-crisis lows, but we believe investors are getting compensated for taking on risk in equities, selected credit / emerging markets (EM) and alternatives.
However, sadly because of the route Chamberlain has taken in the past by losing his consistency of form quite quickly after an absence from the team sheet for a few weeks, I think we risk seeing a completely different Chamberlain on return to club football.
Morata had initially been tipped to return to action for the Crystal Palace game on Saturday, but Conte decided against taking a risk on the Spaniard who hadn't fully recovered from the muscle injury.
This clarification was necessitated when our Global Council, on behalf of IBFAN, had to take a strategic decision whether or not and under what conditions IBFAN should participate in two new initiatives by UNICEF and WHO, WHO NetCode, and the UNICEF Breastfeeding Advocacy Initiative, both receiving funding from the BMGF, which has direct links and gets its returns from the baby food industry and also engages with entities such as the Global Alliance for Improved Nutrition (GAIN) that create situations of risk of conflicts of Interest in infant and young child feeding.
Sequels to comedies used to be pretty rare, but these days if you make even an okay amount of money studios are going to be much more willing to let you return for another go around rather than take the risk of making an original property on a large budget.
If I pay someone to produce and distribute my work in return for a royalty, I suspect that entity isn't taking much of a risk on me.
You're making the monthly payment in return for the insurance company taking on the risk of paying out all the money at once.
Your incentive or reward for taking on this risk by investing your savings is the expectation of getting a «return» on your money.
we have to take decision at the end of 6 months when risk reward ratio as per our analysis say it can not give more than 20 % annualized return from there onward and on the other hand some other cheap stock are waiting for us... Even if one stock which we just sold after earlier will become multi baggar does not mean law of probability say us to hold it..
The biggest disadvantage is, in return for taking on what is perceived to be a greater risk by ignoring credit histories, lenders will charge a higher rate of interest.
So holding anything more than, say, 10 percent of your 401 (k) in company stock is a lose - lose proposition: You're taking on more risk for what will likely be a lower return.
The theory is based on Markowitz's hypothesis that it is possible for investors to design an optimal portfolio to maximize returns by taking on a quantifiable amount of risk.
Active management with a focus on quality to ensure investors are rewarded for the risk taken and remains a true defensive strategy to deliver stable absolute returns over time.
I'd be missing on the returns from now until the crash (that may take a loooong time to come) but I'd be getting some returns for low risk and essentially buying time.
Still, for investors who don't mind taking on added risk in exchange for improved returns, there are ways to play Bitcoin without actually buying the digital currency.
You'll want good prospects for reasonable returns without taking on too much credit risk or interest - rate sensitivity.
But if you've already got your savings in a mix of stocks and bonds that's appropriate for your age and risk tolerance your chances of boosting your return without also taking on significantly more risk are low.
As investors, we deserve a rate of return that compensates us for taking on risk.
High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.
But this brings us to one key problem in the world of investing — if we can measure return, and we can measure risk by looking at volatility, then how do we know if we are being compensated for the risk we are taking on?
Rather than accept low returns or take on more risk in their fixed - income core, we think it makes sense for investors to consider using a tax - aware approach that has the potential to take ad...
PIMCO bond maven Bill Gross, who oversees the PIMCO Total Return Exchange - Traded Fund (NYSEMKT: BOND) and other funds totaling about $ 2 trillion under management, told CNBC yesterday that he would take the other side of Fidelity's trade, gladly accepting yields on short - term securities that are 10 to 20 times what they were a few days ago in exchange for some mild liquidity risk.
Variable annuities provide tax deferral and an opportunity to take on more risk than a fixed annuity in return for greater growth.
This is the ability and desire to take on risk in return for the possibility of higher returns.
To analyze the impact, the key for Ibbotson and Idzorek was to find a long - lasting dimension of unpopularity that would deliver the greatest excess future return while perhaps allowing investors to take on even less risk.
Was the excess return compensation for taking on more risk?
Simply put, if you're not looking for the two extra ways companies reward shareholders in addition to just dividends, you're taking on extra risk and you're not going to maximize your total returns.
Recently I've been working with several new clients who are conservative investors looking for better returns than CDs and Treasuries but aren't interested in taking on the volatile market risk of stocks, bonds and derivatives.
Those going with a zero stock allocation took an emotional risk that they would become frustrated with «missing out» on those great short - term returns and would abandon the strategy just at the worst possible time for doing so.
However, once you've established a rainy day fund, you might feel like taking on more risk in search of higher returns by creating a stock portfolio for yourself.
Take on tremendous risk by investing large portions of their portfolio into only a few company's bonds for a promise of full principal return at maturity (As long as the companies remain solvent of course)?
The more credit we give the Buy - and - Holders for their genuine contributions, the quicker we will see them give up their defensiveness and join us on the path to development of an investing strategy permitting far higher returns to investors taking on greatly diminished risks.
Aggressive investors are willing to take on more risk and volatility in exchange for the possibility of greater returns.
The quantitative approach focuses on the returns achieved by fund managers over varying time periods; in most cases, this approach adjusts those returns for the risks a fund manager takes on... Read More
The firm was founded to offer investment services with a cardinal mandate: the delivery of superior risk - adjusted fixed income returns to clients; performing on this mandate depends on the avoidance of risk - taking that has led to catastrophic principal losses, even under bond managers once reputed for conservative stewardship.
The question becomes, why would an investor take on the risk of owning a condo for virtually no annual return
With 340 stocks, it's meaningfully less diversified than a portfolio including both a «total U.S.» index fund and a «total international» index fund, which means you'd be taking on more risk for a given level of expected return, and
Funds That Sought to Cut Risk With Bonds Are Having to Think Again All - in - one mutual funds for people nearing retirement face tough decisions on how much risk — and which risks — to take in search of decent retuRisk With Bonds Are Having to Think Again All - in - one mutual funds for people nearing retirement face tough decisions on how much risk — and which risks — to take in search of decent returisk — and which risks — to take in search of decent returns.
If not, you are taking on a lot of risk for an overall low or negative return.
A mix of investments which aims for high long - term returns by taking on greater short - term risk and volatility.
If you're willing to take on maximum risk (within the Bond ETF market) in exchange for a higher return, you should choose a high - yield Corporate Bond ETF.
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