enow.com Web Search

Search results

  1. Results from the WOW.Com Content Network
  2. Risk-free rate - Wikipedia

    en.wikipedia.org/wiki/Risk-free_rate

    The risk-free rate is also a required input in financial calculations, such as the Black–Scholes formula for pricing stock options and the Sharpe ratio. Note that some finance and economic theories assume that market participants can borrow at the risk-free rate; in practice, very few (if any) borrowers have access to finance at the risk free ...

  3. Rate of return - Wikipedia

    en.wikipedia.org/wiki/Rate_of_return

    The "risk-free" rate on US dollar investments is the rate on U.S. Treasury bills, because this is the highest rate available without risking capital. The rate of return which an investor requires from a particular investment is called the discount rate, and is also referred to as the (opportunity) cost of capital.

  4. Internal rate of return - Wikipedia

    en.wikipedia.org/wiki/Internal_rate_of_return

    Internal rate of return (IRR) is a method of calculating an investment's rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk. The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate ...

  5. Financial risk management - Wikipedia

    en.wikipedia.org/wiki/Financial_risk_management

    Financial risk management is the practice of protecting economic value in a firm by managing exposure to financial risk - principally credit risk and market risk, with more specific variants as listed aside - as well as some aspects of operational risk.

  6. Internal ratings-based approach (credit risk) - Wikipedia

    en.wikipedia.org/wiki/Internal_Ratings-Based...

    Estimate the risk parameters—probability of default (PD), loss given default (LGD), exposure at default (EAD), maturity (M)—that are inputs to risk-weight functions designed for each asset class to arrive at the total risk weighted assets (RWA) The regulatory capital for credit risk is then calculated as 8% of the total RWA under Basel II.

  7. Risk-free interest rate - Wikipedia

    en.wikipedia.org/?title=Risk-free_interest_rate&...

    What links here; Related changes; Upload file; Special pages; Permanent link; Page information; Cite this page; Get shortened URL; Download QR code

  8. Risk-free bond - Wikipedia

    en.wikipedia.org/wiki/Risk-free_bond

    A risk-free bond is a theoretical bond that repays interest and principal with absolute certainty. The rate of return would be the risk-free interest rate. It is primary security, which pays off 1 unit no matter state of economy is realized at time +. So its payoff is the same regardless of what state occurs.

  9. SONIA (interest rate) - Wikipedia

    en.wikipedia.org/wiki/SONIA_(interest_rate)

    The trimmed mean is calculated as the volume-weighted mean rate, based on the central 50% of the volume-weighted distribution of rates. [7] Eligible transactions are: [7] reported to the Bank’s Sterling Money Market daily data collection, in accordance with the effective version of the ‘Reporting Instructions for Form SMMD’;