Sentences with phrase «return trade off»

The risk - return trade off is only in effect at t = 0.

Not exact matches

Smart investors know that every financial decision you make is a trade - off between risk and return.
But for many investors (including younger investors with relatively long time horizons), sacrificing some liquidity in exchange for mitigated risk and higher potential returns is a trade - off well worth making.
Incoming U.S. data was generally USD supportive, though he return of trade concerns, and another risk off session resulted in some dollar profit taking.
With that said, you always have to make a trade - off between safety and higher returns.
Going forward, the trade - off between risk and return won't be so easy.
So, the trade - off for gaining safety is low returns and possibly a loss of purchasing power.
After providing double - digit returns for many years, REITs are now well off the previous highs and trade at an estimated 15 % discount to net asset value (Source: TD Securities) and yielding an average of 7 %, a spread of 2.75 % over 10 - year bonds.
Instead of more diversification always being better, it becomes a trade - off of risk versus return: Holding more stocks in a portfolio lowers risk, but at the cost of also lowering expected return.
If you pay careful attention to your trades, you will find that will make more money off of trades with a higher rate of return — even if your correct trade rate is a percentage point or two lower.
That's the trade - off we're making whenever we make a high - yield trade: We're limiting our potential upside in return for guaranteed income.
However, with these benefits comes the trade - off of receiving index - like returns — on the upside as well as the downside.
Since the earnings season kicked off last week, shares have returned, on average, a loss of 0.12 percent on the trading day immediately after companies posted their quarterly results, according to data from Bespoke Investment Group.
To get double - digit returns at 2 %, 3 % rates across the [inaudible 00:50:13] spectrum is that... I mean, that's a great trade - off.
«The choice of rebalancing as an investment discipline as compared with an alternative such as buy - and - hold is simply a risk - return trade - off — though one that is a little more subtle than most.
Nations and groups expect a quid pro quo, want something in return, see good deeds in terms of trade - offs.
One significant rule change that flew under the radar — the ability for teams to trade players off injured reserve, with the players» new team able to designate that player to return.
There was even a little social time involved in the drop off and pick up - a glass of wine traded, school fundraising ideas or gardening plans exchanged and borrowed items returned.
There's talk lawmakers could return to Albany for a special session in December, though there have been no formal negotiations to speak of, and Cuomo hasn't yet made clear what — if anything — he's willing to trade legislative leaders in exchange for signing off on a pay raise.
Democratic incumbents Ed Perlmutter of Colorado and Nick Rahall of West Virginia trade places, with Rahall returning to the CNN 100 after a brief hiatus and Perlmutter dropping off.
For the manatee, walrus, dolphin, and killer whale, the return to the sea involved many evolutionary trade - offs amongst hundreds of genes: a general loss of the number of sensory genes for smell and taste, new functions for genes forming skin and connective tissue, and genes involved in muscle structure and metabolism.
But the game gives you some nice trade - offs, in return you get superb graphics, great platforming, and lots of speed (not as fast as the Classic Sonic from Generations though)!
As always, Criterion authors the Blu - ray to both support bookmarks and resume playback, a perfectly fair trade - off for the slight delay it takes to play chosen bonus features and return to the menu afterwards.
So Fair's offer provides the benefit of being able to return the car any time along with clear upfront savings, with a trade - off of driving in a certified used or used car instead of a new one.
Investors still face a trade - off between risk and return when investing in bonds.
These funds are placed on a high risk - return trade - off and are best suited for investors with risky appetite who are looking to invest for long term.
The trade - off between return and risk are well illustrated in the pain ratio.
Can we mathematically define or measure the trade - off between a «risky» currency and a higher rate of return?
Exhibit 2 illustrates the return / volatility trade - off among various sectors.
«In addition, it is also apparent from the results that the Risk - Weight strategy was far superior to the Minimum - Variance when seen through the prism of risk and return trade - off.
On the StatMAP, the omega ratio risk metric is a useful risk / return trade - off measurement for tail risk.
With that said, you always have to make a trade - off between safety and higher returns.
Frequently some sort of optimization algorithm was utilized to maximize the trade - off between expected returns and expected risks.
This will likely lower your expected return, but that is the inevitable trade - off between risk and reward.
Middle - class retirees have always faced a tricky trade - off to achieve decent returns without too much risk.
A study by Werner De Bondt informs us that individual investors display excessive optimism, are overconfident, downplay the importance of diversification, and reject the trade - off between risk and return.
Adding increments of DRS continues to reduce risk and improve the risk / return trade - off across the spectrum.
While investing in short term funds, it is prudent to look for the funds which do not trade off safety in lieu of returns.
The focus of this exercise is on risk reduction or maximizing the return - risk trade - off.
Risk, when measured by standard deviation, is minimized with a 50 % allocation to the DRS.. The Sharpe ratio, which is the most commonly used measure of risk / return trade - off, is maximized at around a 70 % allocation to the DRS.
There's no absolute right answer, as it's a trade - off between risk and return.
But for many investors (including younger investors with relatively long time horizons), sacrificing some liquidity in exchange for mitigated risk and higher potential returns is a trade - off well worth making.
«Headline risk» (the risk of being written up in the financial press for investing in companies with socially problematic practices or experiencing controversies) and related reputational issues are additional understandable concerns that may prompt investor managers to rationally trade off return potential for peace of mind.
Yes; but at some point, things will level off in the near term and return to quiet trading ranges.
Not surprisingly we found that the frontier that uses the equally weighted dividend paying stock basket in lieu of the S&P / TSX Composite Index as representation of the Canadian equity component of the diversified basket, provided the superior compliment to the global portfolio yielding a superior risk / return trade - off set.
Since 1989 utilities have returned 3.03 % compounded annually, but with dividends added back in, they have returned 7.85 % — lower than the S&P 500's 7.10 % stock return, but closer to the 9.41 % with dividends (which is a risk - reward trade - off).
For that time period dividends count significantly, since they pay every year — in good markets and bad (cash - flow is up there in importance), and when compounded can change the return (and therefore the rick - reward trade - off) significantly.
Since we are talking about using the past volatility of a stock to predict its future return, the failure of the risk - return trade - off may be because volatility reverses.
There are even more problems with the concept of a risk - return trade - off.
The risk - return trade - off gets turned on its head in bear markets.
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