Although the new set of regulations are expected to improve the asset quality of UAE insurers Moody's said, even under the new rules UAE insurers can invest a substantial portion of their assets risky asset
classes such as equities and real estate.
This paper selects the Shanghai composite index as a risky asset
investment portfolio (from January 02, 1997, to December 31, 2010), for the following reasons.
We also see an increase in the percentage of the least risky asset
(0 percent risk weight).
(2) The CPPI strategy is based on a dynamic portfolio allocation on two basic assets: a riskless asset (usually a treasury bill) and a risky asset
(a financial stock index for example).
The second step, the so-called asset allocation decision, includes further selection of different classes of risky assets
. The third step, the security allocation decision, entails the selection of specific securities to be held within each particular risky asset
We have participants allocate their investment capital between an asset with a sure return and a risky asset
with a higher expected rate of return.
Kuwaiti banks are coming under increased stress due to contraction in the local economy and exposure to risky asset
classes, Fitch said in a special report.
"If you do take the [allocation to] risky asset
classes down, you'll run into a situation where you need more contributions from the company," he says.
Portfolio theory in finance has a focus on the risky asset
proportion of investments, with the optimal proportion of risky assets
for a household depending on its risk aversion level.
Uncertainty in the standard capital asset pricing model (CAPM) relates to the rate of return on each risky asset
during each period; investors are taken to be concerned about the expected values and variances (and covariances) of the rates of return on risky assets
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.