|
|
Risk adjusted discount rate |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Risk adjusted discount rateThe rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.Risk adjusted discount rate Similar MatchesDiscounted dividend model (DDM)Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. Volume discountVolume discountA reduction in price based on the purchase of a large quantity. Discounted rate mortgageDiscounted rate mortgageA mortgage which guarantees the interest rate charged will remain a set number of percentage points below the lender's standard variable rate. The rate changes as base rate moves up and down, but the relationship between base rate and the rate you pay remains constant. Discount ArbitrageDiscount ArbitrageA riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or maybuy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount. Average discount rateAverage discount ratePurchasers tender their competitive bids on a discount rate basis. The weighted, or adjusted, mean of all bids accepted in Treasury bill auctions. Further SuggestionsDiscount periodDividend Discount Return Discount yield Discount payment Forward discount deep discount Discounted basis bond discount Rediscount Straight Discount Discounted cash flow (DCF) Discounting dividend discount model Discount broker Documented discount notes Discount bond discount rate discount Underwriters discount Accrued market discount Discount Bank discount basis Accretion (of a discount) Stepped discount mortgage Discount factor |
|
|
|