risk adjusted

risk adjusted

Of or relating to a variable, such as the return on an investment, that has been altered in order to account for the differences in risk among variables of the same type. For example, financial managers adjust expected returns on various investment projects for risk in order to make them comparable.
References in periodicals archive ?
The risk adjusted rate is the difference between the minimum return that any investor will require from the stock minus the expected growth rate.
This is the fourth year in a row that the Absa Property Equity Fund has walked away with the Raging Bull accolade for top performer on the basis of risk adjusted returns for a five-year period.
DNIR has improved its identification and quantification of key risks and imposed greater controls to mitigate and reduce the potential impact on earnings and risk adjusted capitalisation.
EXPLORING OPPORTUNITIES TO MAKE BETTER RISK ADJUSTED RETURNS -- XPLORING OPPORTUNITIES TO MAKE BETTER RISK ADJUSTED RETURNS
However, the group's risk adjusted capitalisation remains solid, thanks to its conservative operating strategies, positive reserve development and conservative investment risk.
Blended with financial models for capital valuation and allocation, business decisions are being made based on the cost of needed capital, or economic capital, and the risk adjusted rate of return (the future value of discounted cash flows and the cost of money).
Of the approaches for adjusting for risk in discounted cash flow valuation, the most common one is the risk adjusted discount rate approach, where we use higher discount rates to discount expected cash flows when valuing riskier assets, and lower discount rates when valuing safer assets.
"Going forward, we will continue choosing our transactions selectively, both on the debt and equity side, while seeking appropriate risk adjusted returns."
Although Milli Re's risk-adjusted capitalisation weakened following the purchase of Anadolu shares in September 2010, AM Best considers that its current and prospective risk adjusted capitalisation remains stable and supportive of the company's ratings.
However, the recent shift in the world's financial market towards risk aversion is not only threatening the survival of many carry traders but also questioning the logic of this type of strategies.Carry Trade Survival Kit In this report, we argue that carry traders can increase their risk adjusted returns by tracking the levels of three different inter-market indicators: FX implied volatility, options risk reversals and interest rate expectations.
Hudson is willing to structure transactions in a variety of different ways in order to achieve appropriate risk adjusted returns.
* To determine economic capital, a probabilistic determination of capital gaining favor among many companies for improved and more refined approach to allocation of capital on a risk adjusted basis.