Punitive taxes can drop the potential reward below the point where it balances the perceived risk.
The spread, which reflects the perceived risk of lending to banks, is usually around half a percentage point.
The greater the perceived risk, notes a joyful ratings executive in New York, the greater the demand for ratings.
When the perceived risk of an asset class is low, the expected return is also low relative to more risky asset classes.
The reason, it seems, is partly the perceived risk of school children bumping into inebriated festival goers or, perhaps worse, Amy Winehouse.
The greater the perceived risk, the greater the expected return.
Furthermore, just looking at the Dow components, the vast majority of these stocks not only have yields higher than the perceived risk-free 10-year Treasury, but also have tighter CDS spreads.
The degree of regulation should be proportionate to the perceived risk of the new organism, which is a function of certain characteristics of the host plant, such as weediness, toxicity, ability to outcross, etc.
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In 2005, he was part of a team that published a paper in the Lancet that concluded the perceived risk for travelers was higher than the actual risk, and that's still the case today, he said.
The degree of oversight should be proportionate to the perceived risk of the genetically engineered plant, which is a function of certain characteristics of the host plant (weediness, toxicity, ability to outcross, etc.) and the introduced gene.
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Far more worryingly, this sorting of the wheat from the chaff occurred in the credit defaults swap market, which showed the perceived risk of bankruptcy ballooning for Citi and rising sharply for BoA, while JPMorgan remained more secure.
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The government tries to adjust its payments based on the perceived patient risk, but the insurance industry has figured out a way to game that system and extract even more profit by focusing on the least costly patients for a given medical condition, one recent academic study found.
If interest rates were to rise in the U.S. during an economic slowdown as a result of the perceived higher debt risk, it would hurt the economy even more and possibly lead to another recession.
" Frans van der Horst, head of research at Schroeders Securities in Jakarta, says: "The perceived increase in political risk in Indonesia comes at a time when global investors are very cautious about emerging markets in general.
Well, as I've been pointing out for some weeks the big threat to banks in eurozone countries perceived to be at some risk of leaving the currency union - such as Greece, Spain, Portugal, and Italy - is an outflow of deposits.
So is there a risk of returning to the situation of May, when there was a widely perceived risk of war?
Sutton-Gee is particularly conscious of how perceived risk varies depending on the culture.
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In addition to that we risk the lives of our people and we are perceived as spies in so many of the countries in which we want to work, and this is a risk, a threat, in itself.
In this instance, the market corrected itself to represent a perceived systemic risk.
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Often, in the absence of major PGM-specific news, platinum and palladium will follow these other markets as they react to risk sentiment and perceived prospects about the strength of the economy.
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The perceived value of active defense has to be weighed against the risk and cost.
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Perhaps not surprisingly, the perceived niceness of co-workers was highly correlated with the risk of death.
By mitigating risk, they empower more entrepreneurs by lowering the perceived, and actual, risks associated with launching a product, and perhaps starting a company.
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Perhaps most importantly, any business of any nationality will find it extremely difficult to leave its money in euros in a bank in a country perceived to be at risk of following Greece out the door.
And it that perceived element of risk, I think, that explains the lack of women entrepreneurs.
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During risk-off periods, global investors flock into the perceived safety of Treasury securities.
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The resulting rate is used in basically two ways: as an expression of global credit risk (rates go up when the financial system is perceived to be in danger, like in the fall of 2008) and as a benchmark interest rate for millions of contracts around the world.
There is always the temptation to leave interest rates low just a bit longer to avoid choking off growth, and after previous downturns the European Central Bank was duly berated on all sides when it moved against a perceived risk of inflation.
The financial infrastructure also has important effects on how market participants respond to perceived changes in counterparty risk.
Unable to afford access to traditional financial services, the underbanked have been historically overlooked by lending institutions due to their higher risk profile and lower perceived profitability.
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