It consists of corporate bonds that although individually riskier than higher-rated issues, can be combined into a portfolio to generate a premium return, net of credit losses.
Since the going rate for aas today is more like 5.4%, you have a chance to lock in a premium return on a quality company for a lifetime.
Equities had traditionally been seen as paying a risk premium over the return on safe assets.
In addition, a decline in the equity premium temporarily increases the return to shareholders.
Insurance is supposed to mean a contract, by which a company pays for large, unanticipated expenses in return for a premium: expenses like your house burning down, your car getting stolen or a big medical bill.
FORBES: President Obama's HHS Mandate: Religious Intolerance and Economic Ignorance
The latest variation, described on page 72 by Carrie Coolidge, is called return-of-premium term insurance.
Predictably, he's wary of return-of-premium policies and the specious appeal of getting a 100% refund.
The equity risk premium is usually viewed as the extra return that investors demand for holding equities rather than risk-free bonds.
Considering the call seller will also collect the premium, that would drive a total return of 12.09% if the stock gets called away at the July expiration (before broker commissions).
Considering the call seller will also collect the premium, that would drive a total return of 17.87% if the stock gets called away at the July expiration (before broker commissions).
Considering the call seller will also collect the premium, that would drive a total return of 4.74% if the stock gets called away at the July expiration (before broker commissions).
They do so by figuring out for all their candidates an "equity risk premium"--the amount of return (appreciation plus dividends) they want over safe ten-year Treasury bonds, based on their best guess.
Should the contract expire worthless, the premium would represent a 6.67% return on the cash commitment, or 39.89% annualized at Stock Options Channel we call this the YieldBoost.
Should the contract expire worthless, the premium would represent a 2.50% return on the cash commitment, or 14.96% annualized at Stock Options Channel we call this the YieldBoost.
The company said management at its Hull factory had "proposed improvements in basic pay and no redundancies in return for the continued suspension of premium pay for overtime and bank holidays".
One challenge when evaluating tech stocks in this particular segment is finding a discount rate (required rate of return) that includes enough of a risk premium.
In a nutshell, Buffett looks for companies that have strong brands (which promotes premium pricing) that run understandable businesses with a good return on capital without a lot of debt.
Should the covered call contract expire worthless, the premium would represent a 3.80% boost of extra return to the investor, or 22.75% annualized, which we refer to as the YieldBoost.
Should the covered call contract expire worthless, the premium would represent a 8.85% boost of extra return to the investor, or 52.95% annualized, which we refer to as the YieldBoost.
Should the covered call contract expire worthless, the premium would represent a 3.73% boost of extra return to the investor, or 22.32% annualized, which we refer to as the YieldBoost.
Its called a liquidity premium and its variance over time drives both difference in volatility and average return between investment vehicles.
In return for promising to buy under adverse circumstances, you collect a premium.
In return for accepting junior status in the merger, he obtained a big premium for Chrysler shareholders.
In effect, the incremental premium has given you a savings account on the side, one with lotterylike features and an uncertain return.
However, with respect to return on assets, Acadia Healthcare looks attractive at 3.9%, a marginal premium to the peer group average of 3.5%.
FORBES: Acadia Healthcare Is Gobbling Up Assets And Moving Up The Charts
In 18 to 24 months, we can get back to the normal return profile of the small-cap segment, which tends to enjoy a 20% premium over the large caps.
Also, with respect to return on assets (ROA), ResMed looks attractive at 13.7%, a lofty premium compared to the peer group average of 6.7%.
应用推荐