The equal weighting helps mitigate single company risk while allowing the correlation characteristics to remain prominent.
With a broad market index you are diversifying company risk, sector risk and sometimes country risk.
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Investor cans bypass both company risk and commodities futures trading costs by purchasing U.S. Oil, an exchange-traded fund that tracks the price of oil futures.
These shares carry not only company risk, but also interest-rate risk.
As many of the world problems resolve over the next year, the markets should return to more rational analysis and will reward idiosyncratic company risk when appropriate.
So long as any investors are able to mix enough shares into a portfolio to diversify away specific company risk, they will bid up the price of those shares until they reflect only market risk.
It also says the three ignored the warnings of a company risk officer that the underwriting practices and marketing strategy of matching competitors' offers to subprime and option loan borrowers was substantially increasing risk in the portfolios.
Such a decision might not only make you more miserable, it could also put the financial health of your company at risk as well.
Wynn Resorts executives said not removing Mr. Okada could have put the company at risk in its efforts to get new casino licenses in the future.
She gets verbose when asked about corporate culture at Valve, about how she's never worked at a company where risk and failure are so acceptable -- even encouraged.
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The unfortunate thing is that the employees of this company could risk their jobs by joining in on any media outcry of excessive compensation by any of its executives.
After all, even when a large company encourages risk-taking, there are limits to how much money a bet on innovation can lose before the person responsible for it pays a career price.
The best practices in traditional risk management are vital, as Gary points out, but they are not enough to protect a company from economic risk.
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This is rarer in Germany, where company loyalty and risk-aversion has largely kept pharmaceutical managers out of biotech.
With the usual annuity an insurance company absorbs the risk that buyers will turn out to be unexpectedly long-lived.
So Automatic Data Processing, a low-risk company, gets assigned a 4.5 point premium.
The Southampton-based company said the risk that its ships would be refused entry into the ports was too high.
The company shoulders the risk that investment returns may disappoint, or that its pensioners might live longer than expected.
The biggest of these is mitigating company-specific risk, while investing in a theme or idea that makes sense to you.
The company recently purchased OpenPages, an software company focusing on risk compliance.
But the company insisted the risk was an illusion caused by comparing Vioxx with naproxen, another pain pill they said protected the heart.
Demoting an employee in the hopes that she or he will quit is not only unethical, but is also putting the company at legal risk.
Part of it, says Mr. Welsh, is the company's risk-averse culture.
Outnumbered and outgunned, Charlie Company was at risk of being overrun.
The software house is shifting to a licensing model for Star Wars games, reportedly "minimizing the company's risk" while expanding the range of games on offer.
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Reinsurance is a process whereby an insurance company spreads its risk by transferring a portion of a policy's liability to another insurer, which keeps part of the premium.
Once a company understands the risk associated at the business process (or service) level, they can align their business and IT risk priorities, and reduce total risk exposure.
Capital transaction, Comverge believes it would be unable to raise the necessary capital to fund continuing operations, which would place existing stockholder investment in the company at significant risk.
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Companies have also, sensibly, been switching from defined-benefit schemes, under which the company bears the risk of maintaining pension payments, to defined-contribution plans, in which the risk lies with individual pensioners.
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