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Certainty Equivalent Return |
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Certainty Equivalent ReturnThe certain (zero risk) return an investor would trade for a given (larger) return with an associated risk. For example, a particular investor might trade an uncertain expected 4% active return with 6% risk, for a certain active return of 1.5%.Certainty Equivalent Return Similar MatchesBond equivalent basisBond equivalent basisThe method used for computing the bond-equivalent yield. Equivalent strategyEquivalent strategyAn options strategy which has the same risk-reward profile as another strategy. For example, a long May 60-65 call vertical spread is equivalent to a short May 60-65 put vertical spread. Coupon equivalent rateCoupon equivalent rateSee: Equivalent bond yield Equivalent annual benefitEquivalent annual benefitThe annual annuity with the same value as the net present value of an investment project. Tariff equivalentTariff equivalentThe level of tariff that would be the same, in terms of its effect, usually on the quantity of imports, as a given NTB. Further SuggestionsCorporate taxable equivalentProducer subsidy equivalent Bond equivalent yield cash and equivalents Tax equivalent yield Ad valorem equivalent equivalent pension benefit Equivalent bond yield Equivalent annual cost Equivalent annual annuity Equivalent variation Equivalent tariff Coupon equivalent yield annual equivalent rate Corporate equivalent yield Equivalent quota Common stock equivalent Certainty equivalent Equivalent loan |
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