Liquidity Diversification

Business / Finance / Liquidity Diversification: Investing in a variety of maturities to reduce the price risk to which holding long bonds exposes the investor.

Liquidity Theory Of The Term Structure

Business / Finance / Liquidity Theory Of The Term Structure: A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium. MORE

Liquidity Risk

Business / Finance / Liquidity Risk: The risk that arises from the difficulty of selling an asset in a timely manner. It can be thought of as the difference between the 'true value' of the asset and the likely price, less commissions. MORE

Liquidity Ratios

Business / Finance / Liquidity Ratios: Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities. MORE

Magic Of Diversification

Business / Finance / Magic Of Diversification: The effective reduction of risk (variance) of a portfolio, achieved without reduction to expected returns through the combination of assets with low or negative correlations (covariances). Related: Ma MORE

Markowitz Diversification

Business / Finance / Markowitz Diversification: A strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return. Rela MORE

Principle Of Diversification

Business / Finance / Principle Of Diversification: That portfolios of different sorts of assets differently correlated with one another will have negligible unsystematic risk. In other words, unsystematic risks disappear in diversified portfolios, and MORE

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