The higher the beta, the higher the risk and the higher the expected return.
When building an app, the biggest question for a CEO is the expected Return on Investment (ROI).
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When capital gains taxes are lower, the expected return on capital is higher and stimulates more investment activity.
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The second criterion for asset class inclusion is that the expected return must be higher than the inflation rate.
When the perceived risk of an asset class is low, the expected return is also low relative to more risky asset classes.
This is because the cost of borrowing to the tax-payer is just another way of saying the expected return to the investor.
The standard portfolio rule says that your stock percentage should rise with the expected return (stocks and bonds) divided by squared return volatility.
Understand your current portfolio, i.e. what is the expected return, what is the level of risk and what is the level of diversification.
Additionally, stocks are priced so that the expected return of any stock is identical to all others of its size and growth characteristics.
The expected return is not stellar, but if it is safety and return that the average investor seeks, then Cisco seems a good candidate.
The GAO study found that the DCoE failed to define and articulate its strategic plan, goals, budget projections and the expected return on the investment.
The Feds further alleged that Lowrance had fraudulently misstated the expected return on and risk involved with Forex investments and the use of funds raised from investors.
The greater the perceived risk, the greater the expected return.
To do a quick and dirty analysis of the expected return for junk bonds, all you need to do is look at the yield and subtract the default rate ( read why here).
But if you could build a portfolio where half of the expected return is cash dividends, to which you could depend on buybacks and debt pay downs of another 150 basis points, we now have a 6% yield.
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The writeup at the Economic Policy Institute noted above says Novy-Marx averages the returns of stocks and bonds when he should assume that higher-yielding stocks will become a larger proportion of the fund over time and increase the expected return, even if fund managers rebalance periodically.
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But even if asset returns are estimated accurately, the high expected return reflects the greater risk inherent in equity investments.
Actuaries guess, er, compute how much money is needed today based on life expectancies of retirees as well as the expected investment return on the pension portfolio.
At equilibrium, all its investments will yield the same expected return, equal to the lending interest rate in non-Islamic banking.
Or there is no investment with a lower standard deviation for the same expected return.
The larger the number of standard deviations of the spread from the mean, the higher the expected stock return.
"This is a case of buying low and selling high, because the lower the price goes, the higher the implied expected return rises, " he said.
With the winter blast, Morawski expected the return of an old city tradition in which residents clear a parking space and keep it reserved with a lawn chair.
With these managed portfolios, the participants understand the expected rate of return and the range of returns.
Further work is to be carried out later with the engine expected to return to service in the summer.
The researchers demonstrated this by separately testing both kinds of trustees, those that decided to return the expected amount of money and those that decided to return less.
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The more Chapter 9 filings, the less money Calpers receives, and the more strain on the fictional expected rate of return until the boiler bursts.
Sellal said the militants had expected to return to Mali with the foreign hostages.
The Lord of the Isles is expected to return to service on Friday with the 17:00 Oban to Colonsay sailing.
In June of 2012, Calpers lowered the expected rate of return on its portfolio to 7.5% from 7.75%.
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