Yet, ROE may work better as an indicator of risk than of potential return.
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What runs through them all are wide variations of risk and return, revolving around a range of uncertainties, some of which are well established in the independence debate, some of which are new, and many of which gain from intelligent illumination.
The Forbes Best Buy rankings aim somewhere down the middle: We give equal weight to a measure of risk-adjusted return and to that element of the hurdle that is publicly reported, the expense ratio.
Most of the investments in the program are index funds, each of which is invested in order to replicate the risk and return characteristics of a particular market.
And because they have zero expected return, they are inferior to the rate of risk-free return.
However, a couple of problems arise when we talk about risk as a deviation of return.
Markowitz used mathematics to explain the relationship of risk to return as it relates to asset allocation.
In the long run, both the risk and return of each market remain remarkably stable in real terms.
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The efficient frontier measures all investments on a scale of risk and return.
In addition, it is worthwhile to address how various asset classes affect the risk and return of your portfolio over time.
Just as a blending of colors can produce cerulean, so a blending of indexes produces a unique shade of risk and return.
By South Korean standards, that sort of risk and return is extraordinary.
That we silly people who save wouldn't know what to do with a risk free rate of return if we ever see it again.
Under the the agreement, insurers offer cover to existing customers at significant risk of flooding in return for government commitments to build flood defences.
Prior to that time, all index funds to that point were beta-seeking products that followed the risk and return of a broad market, less a small fee.
That makes it crucial that students and their families understand the factors that affect the risk and return of a college investment in order to swing the math in their favor.
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Thus, you need to be careful not to take on a bunch of unwanted risk in hopes of securing a higher return.
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The concept is that different portfolios with different levels of risk and expected return are offered.
The risk and return components of the efficient frontier are computed for a specific time period, usually one year.
Santander has staffed its Latin American operations with its own credit-risk specialists, who veto any loan that offers less than a risk-adjusted return of 20% a year.
The definition of a crowded trading space, says Chincarini, is when multiple market participants begin to follow the same trade, altering the risk and return dynamics of the trade.
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Management has consistently exhibited great skill in raising capital when investment opportunities are abundant and has demonstrated a consistent ability in investing capital at superior risk-adjusted rates of return.
It's on a motion calling for a rapid agreement between the government and the insurance industry, to renew the long-standing deal under which the industry insures homes in areas at risk of flooding, in return for a government commitment to spending on flood defences.
If you put your whole bond portfolio into the Vanguard index fund, which is mostly in U.S. governments, you have a fairly low risk of default but a fairly high risk of not achieving a positive real return.
Ocean Energy brings a whole portfolio of high-risk, high-return projects, from deepwater blocks off the coast of West Africa to one promising field that lies 9, 300 feet below the Gulf of Mexico.
Others may decide to risk detection by the IRS and the imposition of substantial penalties, including the civil fraud penalty, numerous foreign information return penalties, and the potential risk of criminal prosecution.
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Note that you can get a risk-free real return of 3.5% on inflation-indexed U.S. Treasurys.
But he ignores the fact that savers are incurring permanent losses by being deprived of normal rates of return on risk-free assets.
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My firm uses models for approximation of asset class risk and return.
The performance bonus from minimizing risk for a given level of return (a key tenant of modern portfolio theory) has also been reduced.
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