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Risk handout
Risk handout

... Portfolio Selection The issue of what investments to select for a portfolio is a problem that exists for a corporation seeking to invest in internal projects and seeking investments in external assets such as stocks or bonds. Each project or investment is called an asset in the following discussion. ...
Morgan Stanley Global Fixed Income Strategy
Morgan Stanley Global Fixed Income Strategy

... companies: these securities involve greater risk and the markets for such securities may be more volatile and less liquid. Strategies that specialize in a particular region or market sector are more risky than those which hold a very broad spread of investments. Where strategy concentration is in on ...
Chapter 6
Chapter 6

... Extending Concepts to All Securities The optimal combinations result in lowest level of risk for a given return The optimal trade-off is described as the efficient frontier These portfolios are dominant ...
Fund Facts
Fund Facts

... by the Financial Conduct Authority. This document is issued for information purposes only and is not a solicitation to buy or sell any investment. Nothing in the document should be deemed to constitute the provision of financial, investment or other professional advice. Past performance is not an in ...
What is issuer specific risk?
What is issuer specific risk?

May 2014
May 2014

... The funding level dashboard shows the funding level progression and attribution of funding level change of a Reference Pension Scheme. This Reference Pension Scheme has a liability duration of around 20 years and assumes the liability is linked 50% to real interest rates and 50% to nominal rates. Th ...
Artificial Intelligence (AI) Equity Portfolio Fact Sheet
Artificial Intelligence (AI) Equity Portfolio Fact Sheet

... The Allocator is an AI risk manager that attributes weights dynamically across assets, as a function of changes in asset relationships and market behaviour, in order to minimize expected portfolio capital loss risk and provide a better client investment experience over time. ...
The Returns and Risks From Investing
The Returns and Risks From Investing

... Returns measures are not adjusted for inflation ...
Tree Size and Value Affects Pine Planting Density Decisions
Tree Size and Value Affects Pine Planting Density Decisions

... and average 700 tpa. While the correct planting density for a given situation requires input from individual landowners or managers, recent Alabama Agricultural Experiment Station research indicates lower planting densities than those traditionally used may be more economically sound. The objectives ...
indirect loans
indirect loans

... autos). Profitability is measured as a net yield over the life of the loans or the pools of the loans. The analysis might show that it is better for the credit union to forgo a particular loan type and promote another. On the other hand, although competition normally drives pricing, the credit union ...
CHAPTER 5 ANSWERS TO "DO YOU UNDERSTAND?" TEXT
CHAPTER 5 ANSWERS TO "DO YOU UNDERSTAND?" TEXT

... Thus a future dollar should be discounted by at least this rate, and a present dollar invested for at least this rate. 2. If you were to invest $100 in a savings account offering 6 percent interest compounded quarterly, how much money would be in the account after three years? Solution: ($100)(1+(.0 ...
Section 21 - Effect on AD, LRAS and SRAS curves
Section 21 - Effect on AD, LRAS and SRAS curves

... a. An increase in the money supply causes interest rates to fall. a. An increase in the money supply is an example of monetary policy: The AD curve shifts to the right and there is a movement upward along the SRAS curve. There will be no change in the LRAS curve. ...
Chapter 14 The Money Market
Chapter 14 The Money Market

... Thus, long-term rates are higher than current short-term rates if future short-term rates are expected to be higher than current short-term rates...and long-term rates fall below current shortterm rates if future expected short-term rates are expected to be less than the current level of shortterm r ...
6 - Holy Family University
6 - Holy Family University

... • The set of portfolios that provide the optimal trade-offs are described as the efficient frontier. • The efficient frontier portfolios are dominant or the best diversified possible combinations. All investors should want a portfolio on the efficient frontier. … Until we add the riskless asset ...
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risk - Wiley

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TIAA-CREF Emerging Markets Debt Fund

... Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standard ...
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PDF - EMM Wealth Management

... inevitably leads to capital flowing toward riskier, high-yielding assets such as belowinvestment-grade corporate bonds, bank loans, securitized products and niche financing products, causing spreads to tighten. Such an environment also allows financing to leak to borrowers that were previously seen ...
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Junior Sophisters Monetary and Welfare Economics
Junior Sophisters Monetary and Welfare Economics

... expected rates of return on stocks A and B are 11% and 14% respectively. The beta of stock A is 0.8, while the beta of stock B is 1.5. The risk-free rate is currently 6% while the expected return on the market index is 12%. The standard deviation of stock A is 10% annually, while than of stock B is ...
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The Returns and Risks From Investing
The Returns and Risks From Investing

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Annual total rate of return

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Set 6 - Personal.psu.edu
Set 6 - Personal.psu.edu

... i) This phenomenon is known as convexity. ii) Let's look at an example. Suppose we have an 8%, $1000 bond selling at par with six years till maturity and paying annual coupons. This information is in the first row of Table 1. 6) I used the Excel duration function to calculate D = 4.99. a) What happe ...
Multiple Choice
Multiple Choice

... A. Hedging B. Collateralization C. Pledging D. Securitization E. Window dressing Ans; C ...
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Fixed-income attribution

Fixed-income attribution refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio include the overall level of the yield curve, the slope of the yield curve, and the credit spreads of the bonds in the portfolio. A portfolio manager may hold firm views on the ways in which these factors will change in the near future, so in three separate risk decisions he positions the assets in the portfolio to take advantage of the expected forthcoming market movements. If all views subsequently prove to be correct, then each decision will generate a profit. If one view is wrong, it will generate a loss, but the effect of the other bets may compensate. The overall performance will then be the sum of the performance contributions from each source of risk. Attribution is therefore an extremely useful tool in verifying a fund manager’s claims to possessing particular investment skills. If a fund is marketed as being interest-rate neutral while providing consistent returns from superior credit research, then an attribution report will confirm this claim. Conversely, if the attribution report shows that this same manager is making non-zero returns from interest rate movements, then his exposure to interest rate risk is clearly not zero and his investment process clearly differs from his stated position.Fixed-income attribution therefore provides a much deeper level of information than is available from a simple portfolio performance report. Typically, such a report only shows returns at an aggregated level, and provides no feedback as to where the investor’s true skills lie. For these reasons, fixed-income attribution is rapidly growing in importance in the investment industry.
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