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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 MatchesPortfolio approachPortfolio approachAn approach to explaining exchange rates that stresses their role in changing the proportions of different currency-denominated assets in portfolios. The exchange rate adjusts to equate these proportions to desired levels. Formula approachFormula approachA procedure for organizing multilateral trade negotiations using a formula for tariff reductions as a starting point. Cross sectional approachCross sectional approachA statistical methodology applied to a set of firms at a particular time. Absorption approachAbsorption approachA way of understanding the determinants of the balance of trade, noting that it is equal to income minus absorption. Due to Alexander (1952) Signaling approachSignaling approachNotion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach. Further SuggestionsDebt service parity approachMarket Value Approach Elasticities approach Asset approach Top down approach Residual dividend approach Stratified sampling approach to indexing Optimization approach to indexing Monetary approach Variance minimization approach to tracking |
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