Sentences with phrase «volatility in its portfolio caused»

The industry got a jolt recently when the California Public Employees Retirement System announced it was lowering its historic 7.5 percent expected rate of return in an effort to reduce volatility in its portfolio caused by reaching for risk.

Not exact matches

Investing in a volatile and uncertain commodities market may cause a portfolio to rapidly increase or decrease in value, which may result in greater share - price volatility.

Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the portfolio to participate in losses (as well as gains) that significantly exceed the portfolio's initial investment.

Investing in a volatile and uncertain commodities market may cause a portfolio to rapidly increase or decrease in value which may result in greater share price volatility.

Hedging worked well in the mid-2000s and other periods when the Canadian dollar rose dramatically, but over the long term it causes a drag on equity returns and may even increase a portfolio's volatility.

There is a simple solution if the volatility of a portfolio invested in 100 % stocks causes you to feel insecure.

This is because simply ranking bonds by yield volatility across the universe can potentially result in highly concentrated portfolios in duration or quality, which in turn can cause greater portfolio volatility.

In addition to portfolio volatility lowering returns, many investors let their emotions cause them to buy high and sell low.

Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses (as well as enable gains) in an amount that exceeds the fund's initial investment.

Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses on an amount that exceeds the fund's initial investment.

Index portfolios are designed to provide substantial global diversification in order to reduce investment concentration and the resulting potential increased risk caused by the volatility of individual companies, indexes, or asset classes.

In response to the most recent rise in interest rates, stock price volatility increased causing investors to become more cautious about the stocks in their portfolioIn response to the most recent rise in interest rates, stock price volatility increased causing investors to become more cautious about the stocks in their portfolioin interest rates, stock price volatility increased causing investors to become more cautious about the stocks in their portfolioin their portfolios.

Because wind prices can be locked in up front, businesses incorporating wind into their energy portfolios are better equipped to hedge market volatility in traditional fuels markets caused by supply shocks.