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... The purpose of Chapter is to provide an overview of the major types of financial assets available to investors and discussed in later chapters. It also develops the important alternatives of direct and indirect investing, thereby providing the foundation for Chapter . Obviously, these assets cannot ...
... The purpose of Chapter is to provide an overview of the major types of financial assets available to investors and discussed in later chapters. It also develops the important alternatives of direct and indirect investing, thereby providing the foundation for Chapter . Obviously, these assets cannot ...
The P/E Ratio and Stock Market Performance
... market interest rates. First, a low spread may indicate that stocks are expensive relative to alternative investments such as Treasury securities or money market funds. In such situations, investors may switch from stocks to other assets, causing growth in stock prices to slow. Second, researchers h ...
... market interest rates. First, a low spread may indicate that stocks are expensive relative to alternative investments such as Treasury securities or money market funds. In such situations, investors may switch from stocks to other assets, causing growth in stock prices to slow. Second, researchers h ...
CF Canlife Asia Pacific Fund
... steel. The result of this has been numerous closures in loss-making steel mills and coal mines. This gave rise to better profitability in both coal and steel companies. On the other hand, it is pushing through additional infrastructure spending to support growth. As a result, public investment picked ...
... steel. The result of this has been numerous closures in loss-making steel mills and coal mines. This gave rise to better profitability in both coal and steel companies. On the other hand, it is pushing through additional infrastructure spending to support growth. As a result, public investment picked ...
Measuring and Modeling Execution Cost and Risk
... It is possible that there will be some characteristics of an order that are not observable to the econometrician or possibly to the broker. Some orders may be based on information about upcoming announcements or other forthcoming trades, possibly from the same investor. These orders might have perf ...
... It is possible that there will be some characteristics of an order that are not observable to the econometrician or possibly to the broker. Some orders may be based on information about upcoming announcements or other forthcoming trades, possibly from the same investor. These orders might have perf ...
NSTAR Gas ROE Testimony
... Even if the Company were a publicly traded entity, it is possible that short-term events ...
... Even if the Company were a publicly traded entity, it is possible that short-term events ...
Profitability of Pairs Trading Strategy
... A third differentiating fact that directly relates to the efficacy of pairs trading profitability in Finland is connected to the time span short-selling was officially allowed in the Finnish stock market. Shortselling officially began at the Finnish stock exchange in 1995 when Suomen Optiomeklarit ...
... A third differentiating fact that directly relates to the efficacy of pairs trading profitability in Finland is connected to the time span short-selling was officially allowed in the Finnish stock market. Shortselling officially began at the Finnish stock exchange in 1995 when Suomen Optiomeklarit ...
Global Market Outlook 2017 - State Street Global Advisors
... global economic engine. At the same time, faster inflation and rising interest rates will put pressure on bonds. In the quest for equity growth, we believe investors should be particularly thoughtful about which sectors they choose, as certain areas of the market have been bid up to uncomfortably hi ...
... global economic engine. At the same time, faster inflation and rising interest rates will put pressure on bonds. In the quest for equity growth, we believe investors should be particularly thoughtful about which sectors they choose, as certain areas of the market have been bid up to uncomfortably hi ...
Global Market Outlook 2017 - State Street Global Advisors
... global economic engine. At the same time, faster inflation and rising interest rates will put pressure on bonds. In the quest for equity growth, we believe investors should be particularly thoughtful about which sectors they choose, as certain areas of the market have been bid up to uncomfortably hi ...
... global economic engine. At the same time, faster inflation and rising interest rates will put pressure on bonds. In the quest for equity growth, we believe investors should be particularly thoughtful about which sectors they choose, as certain areas of the market have been bid up to uncomfortably hi ...
Insurance Liabilities - International Actuarial Association
... 1. The willingness or ability of the party to continue to pay the premiums The continued willingness to pay premiums is reflected in the risk of cancellation, lapse, or paid-up options available prior to the end of the contract term. This reduces or cancels the insurer’s obligations in line with a d ...
... 1. The willingness or ability of the party to continue to pay the premiums The continued willingness to pay premiums is reflected in the risk of cancellation, lapse, or paid-up options available prior to the end of the contract term. This reduces or cancels the insurer’s obligations in line with a d ...
The effect of general elections on stock prices for
... the stock market performance at the Nairobi Securities Exchange (NSE). In particular, the study examined whether political-related events mainly the national general elections and their results contain information regarding the changes in prices and volatility at the NSE.Several theories were applie ...
... the stock market performance at the Nairobi Securities Exchange (NSE). In particular, the study examined whether political-related events mainly the national general elections and their results contain information regarding the changes in prices and volatility at the NSE.Several theories were applie ...
Columbia VP High Yield Bond 2 (USD)
... contract. An annuity is a tax-deferred investment structured to convert a sum of money into a series of payments over time. Variable annuity policies have limitations and are not viewed as short-term liquid investments. An insurance company's fulfillment of a commitment to pay a minimum death benefi ...
... contract. An annuity is a tax-deferred investment structured to convert a sum of money into a series of payments over time. Variable annuity policies have limitations and are not viewed as short-term liquid investments. An insurance company's fulfillment of a commitment to pay a minimum death benefi ...
Section 1 Short Term Variability
... risk is that adverse changes in market conditions may result in unacceptable losses, that may lead to the dissolution of a “desk” or to the bankruptcy of an institution. These are the direct impacts of market risk on the institution. A second aspect, less direct but no less dangerous, is that such m ...
... risk is that adverse changes in market conditions may result in unacceptable losses, that may lead to the dissolution of a “desk” or to the bankruptcy of an institution. These are the direct impacts of market risk on the institution. A second aspect, less direct but no less dangerous, is that such m ...
From big to great: The world`s leading institutional investors forge
... To answer these questions, we have surveyed 27 large pensions and sovereign wealth funds that collectively manage $7.4 trillion in assets, and interviewed leaders of these institutions in depth. Our research shows that institutions have a strong desire for a more strategic approach to portfolio cons ...
... To answer these questions, we have surveyed 27 large pensions and sovereign wealth funds that collectively manage $7.4 trillion in assets, and interviewed leaders of these institutions in depth. Our research shows that institutions have a strong desire for a more strategic approach to portfolio cons ...
New Investment Portfolios
... Cap Value Portfolio which seeks to achieve long-term capital appreciation. The portfolio seeks to capture the returns and diversification benefits of a broad crosssection of US value companies with market capitalizations within the largest 90% of the market universe. T. Rowe Price Large-Cap Growth 5 ...
... Cap Value Portfolio which seeks to achieve long-term capital appreciation. The portfolio seeks to capture the returns and diversification benefits of a broad crosssection of US value companies with market capitalizations within the largest 90% of the market universe. T. Rowe Price Large-Cap Growth 5 ...
Illiquid assets - Select Investment Partners
... market) investing in infrastructure or private equity is rarely the same as its Net Asset Value (NAV) or carrying value. Sometimes it is higher (for example, mature private equity portfolios pregnant with upcoming exits) but more often than not it is lower. The valuation issue is complicated because ...
... market) investing in infrastructure or private equity is rarely the same as its Net Asset Value (NAV) or carrying value. Sometimes it is higher (for example, mature private equity portfolios pregnant with upcoming exits) but more often than not it is lower. The valuation issue is complicated because ...
The pricing of volatility risk across asset classes
... innovations of US equities over a long sample period. We find that the (unbalanced) panel of univariate volatility innovations is well described by a simple factor structure. Moreover, the principal factor is highly correlated with the various market index volatility innovations, although substanti ...
... innovations of US equities over a long sample period. We find that the (unbalanced) panel of univariate volatility innovations is well described by a simple factor structure. Moreover, the principal factor is highly correlated with the various market index volatility innovations, although substanti ...
The Welfare Cost of Business Cycles with
... over time but also across all idiosyncratic features of the population. In other words, this welfare measure acts as if people were asked ex ante which economy they would like to be born in. Hence, the measure of business cycles can be thought of as the amount of consumption compensation newborns sh ...
... over time but also across all idiosyncratic features of the population. In other words, this welfare measure acts as if people were asked ex ante which economy they would like to be born in. Hence, the measure of business cycles can be thought of as the amount of consumption compensation newborns sh ...
What is a realistic aversion to risk for real
... The formal definition of bankroll is especially useful for blackjack teams. Members of a blackjack team form a joint bankroll, decide on Kelly fraction, and then share risk and returns of gaming. ...
... The formal definition of bankroll is especially useful for blackjack teams. Members of a blackjack team form a joint bankroll, decide on Kelly fraction, and then share risk and returns of gaming. ...
Research has demonstrated a decline in firms` earnings response
... Source of increase in current earnings affects the ERC: - if earnings are expected to persist into the future this will result in a higher ERC - if the component in the earnings is non-persistent (i.e. unusual, non recurring items) this will result in lower ERC According to ERC theory it is desirabl ...
... Source of increase in current earnings affects the ERC: - if earnings are expected to persist into the future this will result in a higher ERC - if the component in the earnings is non-persistent (i.e. unusual, non recurring items) this will result in lower ERC According to ERC theory it is desirabl ...
1Q14 - Investors
... regulations, or their interpretation, applicable to us, our competitors or our clients; (viii) an economic downturn or other economic conditions adversely affecting our financial position; (ix) recorded loss reserves subsequently proving to have been inadequate; (x) actions taken by rating agencies ...
... regulations, or their interpretation, applicable to us, our competitors or our clients; (viii) an economic downturn or other economic conditions adversely affecting our financial position; (ix) recorded loss reserves subsequently proving to have been inadequate; (x) actions taken by rating agencies ...
Forecasting the equity premium in the Australian market
... Although the creation of good parameter estimates is often viewed as the primary goal of econometrics, to many a goal of equal importance is the production of good economic forecasts. We define the best forecast as the one, which yields the forecast error with the minimum variance. In the single equ ...
... Although the creation of good parameter estimates is often viewed as the primary goal of econometrics, to many a goal of equal importance is the production of good economic forecasts. We define the best forecast as the one, which yields the forecast error with the minimum variance. In the single equ ...
Regulator Use of Market Data to Improve the Identification of Bank
... During the past two decades a recurring implication of research on the relation between market signals and bank financial health is the notion that bank supervision might be improved through the use of information imbedded in stock market prices, returns or other market-related data. This implicatio ...
... During the past two decades a recurring implication of research on the relation between market signals and bank financial health is the notion that bank supervision might be improved through the use of information imbedded in stock market prices, returns or other market-related data. This implicatio ...
Global Equity Index Fund
... Fund in futures contracts for the purpose of acting as a substitute for investment in securities for liquidity purposes or in shares of exchange-traded funds that are registered open-end investment companies. BTC uses a "passive" or indexing approach to try to achieve each Fund's investment objectiv ...
... Fund in futures contracts for the purpose of acting as a substitute for investment in securities for liquidity purposes or in shares of exchange-traded funds that are registered open-end investment companies. BTC uses a "passive" or indexing approach to try to achieve each Fund's investment objectiv ...
Implied Volatility Sentiment: A Tale of Two Tails
... We find that our IV-sentiment measure predicts equity market reversals better than overweight of small probabilities itself and that it delivers positive risk-adjusted returns more consistently than the common Baker and Wurgler (2007) sentiment factor when evaluated via two trading strategies, a hig ...
... We find that our IV-sentiment measure predicts equity market reversals better than overweight of small probabilities itself and that it delivers positive risk-adjusted returns more consistently than the common Baker and Wurgler (2007) sentiment factor when evaluated via two trading strategies, a hig ...
Chapter 15
... original capital and short positions up to 30 percent – The use of the short positions creates the leverage needed, increasing both risk and expected returns compared to the fund’s benchmark – Enable managers to make full use of their fundamental research to buy stocks they identify as undervalued a ...
... original capital and short positions up to 30 percent – The use of the short positions creates the leverage needed, increasing both risk and expected returns compared to the fund’s benchmark – Enable managers to make full use of their fundamental research to buy stocks they identify as undervalued a ...
Beta (finance)
In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market portfolio of all investable assets has a beta of exactly 1. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market. An example of the first is a treasury bill: the price does not go up or down a lot, so it has a low beta. An example of the second is gold. The price of gold does go up and down a lot, but not in the same direction or at the same time as the market.A beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. An example is a stock in a big technology company. Negative betas are possible for investments that tend to go down when the market goes up, and vice versa. There are few fundamental investments with consistent and significant negative betas, but some derivatives like equity put options can have large negative betas.Beta is important because it measures the risk of an investment that cannot be reduced by diversification. It does not measure the risk of an investment held on a stand-alone basis, but the amount of risk the investment adds to an already-diversified portfolio. In the capital asset pricing model, beta risk is the only kind of risk for which investors should receive an expected return higher than the risk-free rate of interest.The definition above covers only theoretical beta. The term is used in many related ways in finance. For example, the betas commonly quoted in mutual fund analyses generally measure the risk of the fund arising from exposure to a benchmark for the fund, rather than from exposure to the entire market portfolio. Thus they measure the amount of risk the fund adds to a diversified portfolio of funds of the same type, rather than to a portfolio diversified among all fund types.Beta decay refers to the tendency for a company with a high beta coefficient (β > 1) to have its beta coefficient decline to the market beta. It is an example of regression toward the mean.