Please enable JavaScript.

Coggle requires JavaScript to display documents.

Risk Management (Risk profile (Lambda) (Factors (Experience (Lesser known…

- - - - Liabilities in next two to five years or longer?
    - - Investment constraints
        
        Allow alternative investments
        
        Special requirements SRI (Sociable Responsible Investments)
        
        Exclude countries/regions
    - - Lesser known assets
      - Reaction during extreme events
    - - Lot or few assets
      - More buffer, more risk
- - - - Look to ratio of Wealth and the Lambda
      - Look to dividend yield+profit growth+expected increase/decrease average price earnings ratio
      - Average two times the growth of the economy
    - - Difference of returns of stocks comparing to Bonds and Bills
    - - Return of company(corporate) bonds with default rate (volatility of equities is two to three times higher than that of company bonds
      - Use Discounted Cashflow approach