The elusive price of risk

Article Abstract:

Investors' attitudes to equity risk are changing and the gap between government securities yields and equity yields has risen. The equity risk premium has dropped. Investors are accepting a drop in expected rewards for assuming equity risk, and this may be because investors are more prepared to take on risk, or that they have been lucky. The UK economy has been stable and equities may appear to face less risk from domestic economic developments. The risk premium could increase due to concern about the impact of the millennium, or other factors.

---

The elusive search for safety

Article Abstract:

United Kingdom government securities (gilts) offer good value as well as protection if stock prices fall. There has been a reduction in the covariance between changes affecting equities and gilts every months. This means that gilts are less likely to be affected by drops in equity prices. There could be a reduction in the volatility of both types of assets as well as a drop in the covariance, but it appears unlikely due to investors' uncertainties about inflation.

Government Bonds, Economic aspects

---

The elusive search for risk

Article Abstract:

Developments affecting British equities are examined in detail, including issues related to risk.

Similar abstracts:

• Abstracts: Five sure of Shell. Three sure of Shell
• Abstracts: The tools of the trade. New horizons. When brokers go bust
• Abstracts: The specific powers of trustees. Dealing with insolvent partnerships. The appointment and retirement of trustees
• Abstracts: The promised land? Set the rules before you play. EIS offers extend tax savings
• Abstracts: The $10 trillion dollar question. The settlement straitjacket. Neuer Markt works to shed wild image

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.