Risky asset

Risky asset

An asset whose future return is uncertain.

Risky Asset

An investment with a return that is not guaranteed. Assets carry varying levels of risk. For example, holding a corporate bond is generally less risky than holding a stock. Government bonds are generally not considered risky assets. A risky asset should not be confused with a risk asset.
References in periodicals archive ?
If the people making investment decisions borrow money, they are only interested in the upper part of the distribution of payoffs of the risky asset because of the possibility of default.
In addition, a tobit regression model was employed with the risky asset share variable used as the dependent variable and the same set of independent variables used in the logistic regression model.
All parties generally agree, as I have noted, that private equity is a risky asset.
Since an individual's recent investment experience correlates with his terminal wealth, learning need not reduce the less informed's risky asset exposure.
Figure 2 analyzes the nature of risky asset price exposures.
In conclusion, we choose the optimal proportions of expenditure on risky asset, survival insurance, life insurance, and education to maximize individual's lifelong utility.
It can be shown that the individual's problem is the same every period t and that the share of wealth he or she invests in the risky asset is a constant [[rho].
But over a three-year horizon, the risky asset acquisitions of the summer of 2008 may be fondly recalled.
Finally, the amount allocated to the risky asset (usually called the exposure) is determined by multiplying the cushion by a predetermined multiple.
While MOA has above-average exposure to common stock, its total risky asset ratio is now well below the industry average due to reductions in below-investment grades bonds over the past five years.
MOA's risky asset ratio is primarily comprised of BIGs and, to a smaller extent, unaffiliated common stock, as the company does not invest in other riskier asset classes such as mortgage loans and alternative investments.
The downgrade of CBM's VR to 'b+' from 'bb-' reflects a moderate increase in Fitch's assessment of the volume of potentially risky asset exposures - driven in part by Fitch now considering some exposures more risky than before and in part by new net issuance - and a reassessment of the appropriate rating level given the volume of these exposures.