First, if a risk-averse manager cannot share the market risk in his compensation, then he will underinvest in projects with market risk (relative to the preferences of diversified investors) even if the cost of capital equals the
riskless interest rate.
[6] In constructing this estimate, we start with 1977 (premanipulation) market values, subtract dividend payments and add public offerings, assuming that in the absence of manipulation that monthly bank returns would have been equal to the
riskless rate of return plus 50% of the industrial shares' excess monthly return.
For this reason, the Ministry of Finance of Norway calculates the value of future tax deductions based on the presumption that firms value the deductions as a
riskless revenue stream (Ministry of Finance, 2012; Jensen, 2017).
DOL PTE 86-128 may be read to cover
riskless principal transactions, which are more in the nature of agency transactions.
As in the corporate bond pricing literature, we express the funding risk in terms of a discount rate for expected liabilities that involve a spread (henceforth denoted a funding spread) over the yield on a
riskless government bond of appropriate maturity, which equals the duration of the pension liability in our case.
The price process of the
riskless asset {[S.sub.0](t) | t [member of] [0, T]} is modeled by
Chamayou's most important contribution to the philosophy of war is life at both ends of killing demands a pause, an acceptance that combat is a most unfortunate option and to reject the idea of
riskless war.
"So, the newborn MacCare we can touch today is not only able to keep your Mac in smooth, quick and
riskless running, but also improve your iDevice performance by retrieving considerable disk space in one click."
Strictly speaking, zero rates are observed only for nominal, medium-term debt that is perceived to be
riskless. But, throughout the eurozone, rates are close to zero -- and negative for a substantial share of government debt -- and are expected to remain low for quite some time.
5, 2013, Oriental had effected approximately 2,800
riskless principal transactions involving Puerto Rico closed-end funds (CEFs) in approximately 1,000 accounts and failed to disclose approximately $2.9 million in markups and markdowns on customer trade confirmations.
In any case, not naming names becomes a
riskless endeavor...
This can enhance young people's sense of engagement and collectivity, as well as allow them to learn how to take (
riskless) risks.
