Information om | Engelska ordet RISK-FREE

Exempel på hur man kan använda RISK-FREE i en mening

• When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs.
• The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk.
• In practice, to infer the risk-free interest rate in a particular currency, market participants often choose the yield to maturity on a risk-free bond issued by a government of the same currency whose risks of default are so low as to be negligible.
• The model takes into account the asset's sensitivity to non-diversifiable risk (also known as systematic risk or market risk), often represented by the quantity beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.
• Libor was phased out at the end of 2021, with market participants encouraged to transition to risk-free interest rates such as SOFR and SARON.
• Suppose there is constant risk-free interest rate r and the futures price F(t) of a particular underlying is log-normal with constant volatility σ.
• Although rho (the partial derivative with respect to the risk-free interest rate) is a primary input into the Black–Scholes model, the overall impact on the value of a short-term option corresponding to changes in the risk-free interest rate is generally insignificant and therefore higher-order derivatives involving the risk-free interest rate are not common.
• We consider here a risk-free bond, meaning that its issuer will not default on his obligation to pat to the bondholder the face value at maturity date.
• Over the long term, the equity risk premium forecasts that equities would outperform risk-free investments.
• These measures can be considered as a modification of the Sharpe ratio in the sense that the numerator is always the excess of mean returns over the risk-free rate while the standard deviation of returns in the denominator is replaced by some function of the drawdown.
• The market volume is growing as a result of the implementation of the Russian Finance Ministry's policy of substituting the external debt for the internal debt and developing a liquid internal government-securities market, which was intended to give market participants sufficient instruments to manage liquidity and form benchmarks for risk-free ruble interest-rates for all economic entities.
• Under a plan announced by Arthuis in 1996, the state-run bank Caisse des dépôts et consignations bought more than two-thirds of the shares of nearly bankrupt property lender Crédit Foncier de France and transfer its assets to another state-run entity, which was to liquidate them over 10 years; although Crédit Foncier was not state-owned, the government had to rescue it not only because of its large exposure to the bond market but also because many French people considered its shares to be among the most steady and risk-free.
• Real-world EEV usually uses a risk discount rate made up of the risk-free rate plus a risk margin which reflects the weighted average cost of capital and Beta from the CAPM model.
• Each county will advertise that no tax sale is risk-free since all title and certificates on property are sold 'as is' with no warranties, and no expectation of clear title.
• In the Short-cut DCF, the passing rent, which is constant (in nominal or real terms) for the duration of the rent period, is discounted at an appropriate rate of return (possibly derived by reference to the risk-free rate of return obtained on government bonds, to which is added an allowance for risk and an allowance for the illiquidity of property assets).
• The original factor model is the capital asset pricing model (CAPM), which predicts that an asset's expected return in excess of the risk-free rate is wholly determined by its exposure to the market factor.
• Opponents of snus sales maintain, nevertheless, that even the low nitrosamine levels in snus cannot be completely risk-free, but snus proponents point out that, inasmuch as snus is used as a substitute for smoking or a means to quit smoking, the net overall effect is positive, similar to the effect of nicotine patches.

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