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 bon
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 bon
for 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 retu
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 retu
risk — 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.