Over the last two years, estimated required returns on equity derived by Australian regulators have been relatively low due to a significant fall in the estimated risk free rate of return in comparison with its previous levels. Australian regulated businesses have argued that the risk-free rate of...
the state of being, or making safe, secure, free from dangeretc.the security of a happy home;This alarm system will give the factory some security;There has to be tight security at a prison;(also adjective) the security forces;a security guard.seguridad ...
This study aims to determine the relationship between housing risk and housing return in Australia. Design/methodology/approach - The analysis of this study involves two stages. The first stage is to estimate the presence of volatility clustering effects. Thereafter, the relation between risk and ...
Three of the most important functions of free markets are: price discovery, the provision of liquidity, and capital allocation. Honest and transparent dealings between willing buyers and sellers are thought to result in liquid and efficient marketplaces. Prices are determined, second by second, in ...
The first is that investment assets should bear a reasonable return. However, our results suggest that the projected returns of ERMs are very low, and below the risk-free rate except where borrowers are (at least) in their late 70 s. A pension fund would do better to avoid ERMs altogether...
Presume that the benchmark index falls during the term of the investment. Then, the pension member will receive the principal plus a 1% guaranteed return (the difference between the risk-free interest rate and the issuer’s markup). Conversely, presume that the index rises by 20%. Then, ...
Digital contact-tracing applications (DCTAs) can help control the spread of epidemics, such as the coronavirus disease 2019 pandemic. But people in Western societies fail to install DCTAs. Understanding the low use rate is key for policy makers who suppo
ASX200/Australia: Jan 2008 – March 2019 Return 135 -0.291 4.095 -14.026 6.797 3.477 -0.736 IV 135 19.091 8.147 10.368 54.606 6.911 1.843 EPU 135 120.889 58.705 37.091 337.044 5.05 1.46 Since macroeconomic forces influence the stock markets (Chen et al., 1986), we control for these. We inc...
Specifically, we assume that the log nominal SDF is driven by a country-specific factor uk, a global factor ug, and a tail factor Tailk:(1)−mk,t+1=ik,t+ak,t+γkuk,t+1+δkug,t+1+λkTailk,t+1,where ik represents the risk-free interest rate of country k; ak is a ...
Living standards remain very high on a global and regional basis, and there is no sign of any significant opposition to the status quo. Brunei has close military ties with the US, the UK and Australia that continue to provide protection against any possible regional instability. ...