Financial and business terms. 2012.
Riskless rate of return — The rate earned on a riskless asset. The New York Times Financial Glossary … Financial and business terms
riskless rate of return — The rate earned on a riskless asset. Bloomberg Financial Dictionary … Financial and business terms
Riskless or risk-free asset — An asset whose future return is known today with certainty. The risk free asset is commonly defined as short term obligations of the U.S. government. The New York Times Financial Glossary … Financial and business terms
Riskless arbitrage — The simultaneous purchase and sale of the same asset to yield a profit. The New York Times Financial Glossary … Financial and business terms
riskless arbitrage — The simultaneous purchase and sale of the same asset to yield a profit. Bloomberg Financial Dictionary … Financial and business terms
risk-free asset — also: riskless asset An asset whose future normal return is known today with certainty. Bloomberg Financial Dictionary … Financial and business terms
Margrabe's formula — In mathematical finance, Margrabe s formula is an option pricing formula. It applies to an option to exchange one risky asset for another risky asset at maturity. Suppose S1(t) and S2(t) are the prices of two risky assets at time t, and that each … Wikipedia
Constant Proportion Portfolio Insurance - CPPI — A method of portfolio insurance in which the investor sets a floor on the dollar value of his or her portfolio, then structures asset allocation around that decision. The two asset classes used in CPPI are a risky asset (usually equities or… … Investment dictionary
Constant proportion portfolio insurance — (CPPI) is a capital guarantee derivative security that embeds a dynamic trading strategy in order to provide participation to the performance of a certain underlying asset. See also dynamic asset allocation. The intuition behind CPPI was adopted… … Wikipedia
Passive management — (also called passive investing) is a financial strategy in which a fund manager makes as few portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax. One popular method is to mimic the … Wikipedia
