Sentences with phrase «risky than the market»

Let's say the risk - free rate of return is 1 %, the market itself is expected to return 4 percentage points more than the risk - free rate (so the market's risk premium is 4 %), and a stock has a beta of 1.5, which makes it more risky than the market.

One school of thought is that value stocks are riskier than the market as a whole and investors are compensated with higher expected returns for the additional risk.

Given that dividend stocks are value stocks, and value stocks have higher expected returns and therefore higher risk than the market, why is that dividend stocks are less risky than the market - at least XDV and CDZ?

They must either choose to be substantially more risky than the markets they engage in (which churning up higher taxes and fees) or they necessarily correlate to the market they're engaged in.

Traditionally, this has been brushed aside by asserting that small cap stocks and value stocks are riskier than the market so it is not surprising that the returns are higher.

Funds with high betas are consequently riskier than the market, those with low betas are less risky.

Not exact matches

Whether it is stricter regulations, negative interest rates, or fragile confidence, banks and other market participants are less than keen these days to hold large piles of risky assets.

The more complex debt market has worked wonders in the past few years allowing somewhat riskier companies like Valeant amass more debt, at lower rates, than they would have been able to past.

Developing and marketing custom products is a riskier, more capital - intensive business than simply importing and exporting produce.

We believe the Statoil acquisition strengthens the company's business risk profile by adding an established, profitable c - store and fuel retailer with a strong market share of more than 30 % in the mature markets of Sweden, Norway, and Denmark with good growth prospects in riskier, more fragmented Eastern Europe.

The meeting is part of a process to market iQOS as being less risky than cigarettes.

It's a little riskier than holding a big bank in your retirement account, but if you don't mind owning a $ 205 million market - cap business then there could be some good upside ahead, says Bruce Campbell, president and portfolio manager at Kelowna - based StoneCastle Investment Management.

That's because selling products to your existing customers is far less risky than «having to learn a new product and market at the same time,» McFarland says.

Given the global market dependencies on the local central bank, investing in any manner is riskier than it has been on the past.

In many ways, the private student loan market operates much differently than the traditional stock market and might be even riskier.

Overall, the fund is a bit riskier than a more neutral take on the market, and significant sector bets abound.

However, these higher yielding bonds are often the most risky, resulting in a lower risk - adjusted return than the broad market.

For example, going the ETF route to invest in emerging markets is still riskier than investing in developed markets.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

Therefore, these funds may be more risky than those which invest more broadly across markets and geographies

«The market is very risky - far more risky than if you blithely assume that prices meander around a polite Gaussian average.»

More flexible than working with traditional investors and without fear that your niche product is too risky, crowdfunding is an efficient and low - risk method to bring innovative ideas to the market.

Many investors feel stock markets are more volatile and that investing is riskier today than ever before.

This is not because the market considers them less risky than US Treasuries, but because many municipal bonds are considered almost as safe as treasuries AND they have a big tax advantage over treasuries.

Rather than looking to the big city markets of New York and Miami, overseas investors are snapping up less risky property deals in Charlotte's stable market, but are still achieving rental returns over 9 % a year, says Torcana Director, Colin Murphy

Is the widespread use of cov - lite making the leveraged lending market riskier than before the financial crisis?

As an investment, a drug that is in the discovery or pre-clinical stage is a very risky proposition, with less than a 1 % chance of getting to market (according to an industry report published in 2003 by the Pharmaceutical Research and Manufacturers of America).

These bonds are viewed by the market as riskier than other corporate bonds since there is lot of uncertainty about their future, and these companies will not be able to guarantee repayment of the bond.

And, although I agree that lenders should consider the investment on the high - risk side, I'm not convinced that it is much riskier than the stock and bond market - AT THIS TIME.

«Since we never know when risky behavior will bring on a market correction, I'm going to issue a warning today rather than wait until one is upon us,» Marks wrote.

The downside is that you'll often pay above market prices, and it can also be riskier than other options.

Foreign investments can be riskier and more volatile than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., «Brexit»).

In the winter, the men «went to the bush» for long months in rough company and risky work, until the great spring drive when the Ottawa River, more than a mile wide, was filled with the booms of millions of logs heading south to feed an insatiable market for wood.

Today's specialty market is far riskier than it was five years ago.

It's far less risky and expensive for to come up with new variations on Oreos than develop and market a wholly new cookie.

They may approach market dynamics in an aggregate form, but in that case all the boycott will succeed in doing is giving the publisher the impression that this Kindle thing is a high risk venture (more so than hard copy which is already a risky proposition).

What we and our publishers do to bring a book to market is so much riskier than what Amazon does to bring it to the reader.»

Another option, though may be not as safe as CDs or money market accounts, is high quality dividend paying stocks (always understand that investing in the stock market is riskier than putting money in bank accounts), some with more than 5 % dividend yield at the end of 2010.

We would contend that this makes some markets riskier than generally assumed.

Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions (e.g., «Brexit»).

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

A fund that invests in just one type of stock or bond such as one industry sector, world region, country, or market capitalization will be less diversified and more risky than a broad based fund that invests in many companies across multiple industries, countries, and market caps.

A sector funds tend to be riskier and more volatile than the broad market because they are less diversified, although the risk level depends on the specific sector.

Although money market funds traditionally hold their value at a share price of $ 1, there's no guarantee that the principal value won't deviate from $ 1, which makes the MMF riskier than the comparable bank and brokerage account products.

For this reason, market orders are a bit riskier than on - stop or limit entry orders.

Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries.

These bonds are viewed by the market as riskier than other corporate bonds since there is lot of uncertainty about their future, and these companies will not be able to guarantee repayment of the bond.

Foreign investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as political and economic developments in foreign countries and regions.

In addition, small - cap and value stocks are riskier than the overall market, and therefore also have higher expected returns.

Markets in Western Europe and Japan are no riskier than those in North America, but emerging markets are a different Markets in Western Europe and Japan are no riskier than those in North America, but emerging markets are a different markets are a different matter.