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Certainty equivalent |
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Certainty equivalentAn amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount.Certainty equivalent Similar MatchesEquivalent 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. Equivalent variationEquivalent variationThe amount of money that, paid to a person, group, or whole economy, would make them as well off as a specified change in the economy. Provides a monetary measure of the welfare effect of that change that is similar to, but not in general the same as, compensating variation. Equivalent annual benefitEquivalent annual benefitThe annual annuity with the same value as the net present value of an investment project. Corporate equivalent yieldCorporate equivalent yieldA comparison of the after-tax yield of government bonds selling at a discount and corporate bonds selling at par. Cash and equivalentsCash and equivalentsThe value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and bankers' acceptances. Cash equivalents on balance sheets include securities that mature within ninety days. Further SuggestionsTax equivalent yieldCertainty Equivalent Return Bond equivalent basis Producer subsidy equivalent Equivalent tariff Common stock equivalent Tariff equivalent annual equivalent rate Coupon equivalent rate Equivalent annual cost equivalent pension benefit Equivalent quota Coupon equivalent yield Bond equivalent yield Equivalent annual annuity Equivalent bond yield Equivalent loan Ad valorem equivalent Corporate taxable equivalent |
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