Sentences with phrase «to compensate for the risk»

In other words, at what point does attractive valuation compensate you for the risk of investing in lesser quality securities?

People who own stock in companies are therefore compensated for this risk in the form of much higher returns on their money, as compared to safer assets like savings and government bonds.

In all of these activities, it's a rare investor who makes enough profit to compensate for the risk involved.

With rates this low, lenders are not being properly compensated for risk, so fundamental financial laws are being violated.

Private lenders are not eligible for government - provided insurance on mortgages and therefore require an initial fee to compensate for risk associated with private deals.

The second bond has a longer maturity, and the investor is compensated for this risk by receiving a larger coupon payment.

The larger the margin of safety the higher the odds that investment returns will compensate you for the risk taken.

If you're not being appropriately compensated for that risk, you may want to address the issues by changing your method of operation.

From fair prices we expect fair returns, meaning that investors should be compensated for their risk exposure over an appropriate period of time.

We only invest when we are compensated for the risk assumed.

They were not willing to pay more to compensate me for the risk either.

To compensate for the risk of financing and delayed payment, I charge a flat 10 % to the amount financed; you can adjust the charge based on your time and needs.

As we mentioned above, in all of these activities, it's a rare investor who makes enough profit to compensate for the risk involved.

In other words, investors must be properly compensated for risk.

Since private lenders are not eligible for government provided mortgage insurance many charge an initial lender fee to compensate for the risk associated with private mortgages.

As a debt investor you must be prepared to ask yourself an important question when considering an investment in a corporate bond: Am I being adequately compensated for risk versus government bonds, equities and cash?

We all creep out of the yield curve, but we forget that we are not getting compensated for the risk of default.

These inefficient portfolios aren't compensated for the risk that they take, and they often underperform.

In fact, when looking at the earnings yield relative to real bond yields — the equity risk premium (ERP)-- investors are still being well compensated for risk in many corners, we believe.

Qualcomm again said Broadcom's promised breakup fee of $ 8 billion in the event regulators thwart the deal did not come close to compensating for risks related to the deal.

This discount rate compensates you for risk and gives you a return on your investment.

Correctly understanding and implementing risk reward strategies is the way professional traders compensate for the risk involved in any trade, combined with a refined sense of patience when selecting trades.

When multiple traders begin to believe there is money to be made, competition between them can quickly lower the spread to a level where the profits are only compensating for the risk of trading.

But alternatives with some risk attached are superior only if the return more than fully compensates for the risk.

Although it can be argued that investors are being fairly compensated for the risk of choosing equities over bonds in this period, the bond index's Sharpe ratio of 1.16 % versus 0.38 % for the equity index would indicate equities are the riskier asset.

On the other hand, if you think React is so valuable that you can create a product significantly faster, that would likely compensate for the risk.

Invest in areas where you are more than adequately compensated for the risks.

Strong corporate earnings and steady growth support our belief that investors will get compensated for risk - taking in equities, particularly outside the U.S..

However, for long - term investors to be properly compensated for the risks of owning coal, they would have to believe coal will deliver sustained outperformance.

In fact, when looking at the earnings yield relative to real bond yields — the equity risk premium (ERP)-- investors are still being well compensated for risk in many corners, we believe.

The question that dawns from this exercise is, how much excess return (or minimum hurdle rate) is appropriate to compensate for the risk in investing in non-risk free investments such as stocks?

These issuers must pay a higher interest rate to attract investors to buy their bonds and to compensate them for the risks associated with investing in organizations of lower credit quality.

Though I agree that it is not easy to benchmark an individual stock against anything, but over the long term any riskier or uncertain investment or portfolio of riskier or uncertain investment should deliver real returns for the investor in order to compensate for the risk taken.

These inefficient portfolios aren't compensated for the risk that they take, and they often underperform.

As I delve into in upcoming columns in this series, they typically not only fail to appreciate our knowledge and expertise necessary to successfully ply our trade, but also that a large portion of our fee is justified to compensate us for the risk involved in agreeing to an agency with them.

The elder Buffett has shunned bonds in recent years, saying that near record - low yields aren't enough to compensate for the risk of inflation.

They're not demanding the higher returns to compensate them for those risks.

The lender needs this documentation to assess your ability to repay the loan so that they can decide whether to issue you a loan, and if so, what interest rate to charge you to compensate for the risk that they take.

Given the X is below the hyperbola, it looks like I'm not getting properly compensated for the risk I'm taking.

Multipliers are frequently used in offsetting to compensate for the risk of failure of the offset measures and the time lag between when negative impacts of the development project are felt and the positive impacts of offsetting come to fruition, often a period of many years.

To compensate for these risks, lenders may charge higher interest rate for jumbo loans.

That's an impressive return on the buyers» roughly $ 6 billion of equity — much more than sufficient to compensate for the risk of a continued slide in the PC business.

It is up to every investor to decide whether the yield offered by a particular issuer's bonds is enough to compensate them for the risk those bonds pose.

As you would be taking on more risk than with the Treasury security, you should be paid a higher yield to compensate for that risk.

Payroll lenders charge high enough interest rates to compensate them for the risk that borrowers will default.

Lower - grade dollar - denominated bonds (including those issued by foreign entities, including emerging economies) have a slightly larger allocation because over time they typically pay a yield premium that more than compensates for the risk.

Investing for so long without being compensated for the risk you bear can permanently damage investors» psychology.