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A short sale. Because when you short sell a stock, its value can raise an unlimited amount and you will be liable to cover it eventually.
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∙ 15y ago
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What is the highest credit rating?
Premium Investment Grade is the highest credit rating.Prime Investment Grade: No Risk of DefaultRating AgencyRatingS&PAAAMoodyAaaFitchAAA
What is the premium added as a compensation for the risk that an investor will not get paid in full?
maturity risk premium
What is the current market risk premium?
Banks are currently using 8% market risk premium. Data as of Feb, 2013.
Does a T-Bond have a default risk premium?
yes
What are the equity related finance project topics?
equity risk premium
What is the highest rate?
Premium Investment Grade is the highest credit rating.Prime Investment Grade: No Risk of DefaultRating AgencyRatingS&PAAAMoodyAaaFitchAAA
What is the highest credit rating?
Premium Investment Grade is the highest credit rating.Prime Investment Grade: No Risk of DefaultRating AgencyRatingS&PAAAMoodyAaaFitchAAA
The market risk premium is measured by?
The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.
What is the credit rating?
Premium Investment Grade is the highest credit rating.Prime Investment Grade: No Risk of DefaultRating AgencyRatingS&PAAAMoodyAaaFitchAAA
What is the premium added as a compensation for the risk that an investor will not get paid in full?
maturity risk premium
What is risk premium?
Risk premium is the compensation investors expect to earn in return for taking risks.
What financial assets is likely to have the highest required rate of return based on risk?
common stock
What is the current market risk premium?
Banks are currently using 8% market risk premium. Data as of Feb, 2013.
What does it mean when one has market risk premium?
When one has market risk premium he/she is willing to take an financial risk. The risk premium is how much value stocks should return over a risk-free investment. Stocks are considered a higher financial risk (and possible a faster gain) opposed to, for instance, bonds.
What is the premium that reflects the risk associated with changes in interest rates for l long-term security?
Maturity Risk Premium (MPR)
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
What most likely causes lung cancer?
The highest risk of cancer is for people that smoke. Perhaps the next highest risk is for people exposed to secondhand smoke. And then after that would be people that are exposed to toxic chemicals and pollutants in the air that they breathe.
