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.

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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.

Modelling financial instability

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.

Attitude toward Risk and Risk-Taking Behavior of Business-Owning Families

All parties generally agree, as I have noted, that private equity is a risky asset.

Statements to the Congress

Since an individual's recent investment experience correlates with his terminal wealth, learning need not reduce the less informed's risky asset exposure.

Equilibrium with divergence of opinion

Figure 2 analyzes the nature of risky asset price exposures.

Managing business risks

In conclusion, we choose the optimal proportions of expenditure on risky asset, survival insurance, life insurance, and education to maximize individual's lifelong utility.

An OLG model for optimal investment and insurance decisions

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].

Estimation and impact of gender differences in risk tolerance

But over a three-year horizon, the risky asset acquisitions of the summer of 2008 may be fondly recalled.

Fingers poised on triggers to deal with rampaging bears; MARKETS

Finally, the amount allocated to the risky asset (usually called the exposure) is determined by multiplying the cushion by a predetermined multiple.

Portfolio insurance strategies: a comparison of standard methods when the volatility of the stock is stochastic

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.

Fitch Affirms Mutual of America IFS at 'AA-'; Outlook Stable

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.

Fitch Affirms Mutual of America's IFS Rating at 'AA-'; Outlook Stable

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.