It is indeed worth having an insurance policy against risk and possibly even uncertainty.
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In short, it was impossible for the entire financial system to protect itself against risk.
Mr Merton even argued that improved hedging techniques rendered equity capital unnecessary as a cushion against risk.
This time of year, you can use those to hedge against risk in the rest of your portfolio.
Four new schemes would be created to help firms get access to credit and insure against risk, he said.
However, banks also use derivatives trading as a way to hedge against risk.
Participants are also learning that conjuring up new indexes to hedge against risk is not always foolproof or risk free.
The financial markets guide investment capital where they discover the prospect of profit as measured against risk and return considerations.
Four new schemes will be created to help such firms get access to credit and insure themselves against risk, and one existing scheme will be extended.
All have matched or beaten the Nareit index in the past five years and score high in our Best Buy ratings system, which measures performance against risk and expenses.
Derivatives enable individuals and companies to insure themselves against risk.
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Protecting against risk is a sobering business.
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After all the fascinating war stories were related by our fine panel, Bob Litterman, Leslie Rahl, Eli Ayache and Bruno Dupire , there was this almost embarassed admission that quant solutions to protect against risk and the dangers of volatility may not necessarily protect against the exaggerated level of confidence that existed in Wall Street in 2007, prior to the 2008 meltdown.
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It will require evidence of what the organisation knew about the risk posed by Savile, what complaints it received and what protective measures it put into operation to guard against that risk.
The perceived value of active defense has to be weighed against the risk and cost.
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They also recommended using shorter implants to guard against the risk of nerve damage.
It said the service was failing to protect adequately against the risk of infection.
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The current agreement has the effect of insuring its equity stake against market risk.
If exchanges' liabilities aren't capped, effectively they would need insurance against the risk of massive losses.
They can actually play a useful role in enhancing liquidity and immunising a portfolio against unexpected risk.
Far better, reckons Mr Scholes, if firms were to buy protection against liquidity risk in the market.
Since equities are a claim on corporate revenues, surely they ought to be a hedge against inflation risk?
And we have to balance the costs against the risk that purchasers will turn to other, lower-cost countries.
Look at the true potential reward of sticking it out and weigh it against the risk of giving up.
And bringing the implicit guarantee of other sovereigns to bear against the risk of redenomination would create new problems.
Another result was that any investment that was in some way hedged against the risk of rising interest rates underperformed.
Better positioned, particularly against the risk of devaluation, are firms with subsidiaries that have their own capital, deposits and debt.
Insurance companies will no longer be allowed to discriminate against high risk patients or charge exorbitant premiums to screen them out.
According to a survey in the early 1990s, only 26% of commercial farmers used any sort of hedge against price risk.
Many residents have tried to protect their savings against the risk of further turmoil by putting the money into more stable currencies.
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