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Risky Asset Substitution

The process that an insurance firm undertakes to substitute the components of its portfolios with highly risky assets such as...

Risky Asset

An asset whose future performance is uncertain (in both directions, upward and downward). A risky asset exposes its holder (investor)...

Covariance

A statistical measure of how much the returns on two risky assets move together. In other words, it expresses the...

Risk-Off Trading

Trading that involves less risky or riskless securities or secure trading positions. This usually initiates with dumping of risky securities...

RORO

It stands for risk-on, risk-off; the process of two-way switching between risky and risk-free investments depending on or in reaction...

Risk-On, Risk-Off

The process of two-way switching between risky and risk-free investments depending on or in reaction to risk sentiment as perceived...