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Risk premium approach |
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Risk premium approachA common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns.Risk premium approach Similar MatchesMonetary approachMonetary approachA framework for analyzing exchange rates and the balance of payments that focuses on supply and demand for money in different countries. A floating exchange rate is assumed to equate supply and demand and thus to reflect relative growth rates of money supplies and determinants of demand. Under a pegged exchange rate, the balance of payments surplus or deficit equals the excess demand or supply, respectively, for a country's money. Cross sectional approachCross sectional approachA statistical methodology applied to a set of firms at a particular time. Debt service parity approachDebt service parity approachPayment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal). Asset approachAsset approachA theory of determination of the exchange rate that focuses on its role as the price of an asset. With high capital mobility, equilibrium requires that expected returns on comparable domestic and foreign assets be the same. Residual dividend approachResidual dividend approachAn approach that suggests that a firm pay dividends if and only if acceptable investment opportunities for those funds are currently unavailable. Further SuggestionsMarket Value ApproachElasticities approach Portfolio approach Stratified sampling approach to indexing Signaling approach Top down approach Formula approach Optimization approach to indexing Absorption approach Variance minimization approach to tracking |
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