Risk & Return
Table of Contents |
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Welcome |
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What is Risk? |
1 |
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Probability distribution |
2 |
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Nominal returns, real return |
2 |
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Reinvestment rate risk |
3 |
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What is Risk Tolerance? |
3 |
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Time horizon |
3 |
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#1. Inflation Risk |
6 |
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Protection Against Inflation |
7 |
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Diversification |
9 |
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Risk reduction |
10 |
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Measuring Risks |
10 |
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Alpha & Beta |
11 |
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Lifecycle Beta |
12 |
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Loss Frequency |
12 |
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Severity |
13 |
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Variation |
13 |
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Measuring Risk Further |
13 |
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Probability distribution |
13 |
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Expected Rate of Return |
14 |
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Standard deviation |
14 |
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Maximum Possible & Probable Loss |
15 |
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Living with Risk & Return |
15 |
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#2. Interest Rate Risk |
16 |
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Value risk |
16 |
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Call risk |
17 |
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#3. Business Risk |
18 |
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Diversifiable risk |
18 |
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#4. Credit Risk |
19 |
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#5. Market Risk |
20 |
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What is Total Risk? |
21 |
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#6. Liquidity Risk |
21 |
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#7. Portfolio Risk |
22 |
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Covariance |
22 |
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Correlation Coefficient |
22 |
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Efficient Portfolios |
23 |
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Asset Allocation |
24 |
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Guidelines for Asset Allocation |
25 |
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Expected Return |
26 |
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How Much Return is Required |
26 |
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CAPM |
26 |
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Treating Risk |
27 |
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Two Basic Methods |
27 |
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Risk Control |
27 |
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Risk Financing |
28 |
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Risk Control Alternatives |
28 |
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Risk Avoidance |
28 |
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Combination, Segregation |
29 |
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Loss Prevention & Reduction |
30 |
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Noninsurance Transfers |
31 |
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Risk Financing Alternatives |
31 |
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Risk Retention |
32 |
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Risk Transfer |
33 |
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hedging contract, neutralization |
34 |
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hold-harmless agreement |
34 |
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Law of Large Numbers |
37 |
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law of averages |
37 |
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A Large Group of Homogeneous |
39 |
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The Loss Produced by Peril Must |
39 |
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The Occurrence of the Loss Must |
40 |
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The Loss Must be Large Enough |
40 |
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Affordable Premium Costs |
40 |
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The Chance of loss must be |
41 |
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The Peril Must be Unlikely to |
41 |
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United Insurance Educators, Inc.
PO BOX 1030
Eatonville, Washington 98328-8638
(253) 846-1155
Email: mail@uiece.com
Website: www.uiece.com