Sentence examples for prices of risk from inspiring English sources

The implementation of the optimal strategy is thus much easier, as it involves estimating the characteristics of the yield curve and the market prices of risk only rather than those of numerous (a priori unknown) state variables.

The first one is associated with interest rate risk and the second one with the risk brought about by the co-movements of the spot interest rate and the market prices of risk.

To also incorporate uncertainty about the drift, we admit for market prices of risk (widehat {xi }^{theta }) being from a radial set of which (widehat {xi }) is the center, that is, we consider left{ widehat{xi}^{,theta}:=widehat{xi}+widehat{Pi}(theta) Big lvert theta mathbb{F}text{-predictable,} lverttheta_{t} omega)rvertle delta_{t} omega), (t,omega in[0,T]timesboldsymbol{Omega}right} (10).

It is exogenous to the economy and will be chosen so that prices of risk-free assets are equal.

The rising yields "largely reflect a one-time re-pricing of risk," it said.

Another danger is the pricing of risk by regulation, not markets.

Last year's laureates, Myron Scholes and Robert Merton, won their prize for work on the pricing of risk.

It raised concerns about the adequacy of China's regulatory controls, the quality of underwriting and the pricing of risk.

But it would also undermine the efficient pricing of risk by providing insurance, after the event, for risky behaviour.

If so, independent pricing of risk, which is what derivatives are meant to be about, would be the real casualty.

None of what economists call "moral hazard" (paying the price of risk and failure) for people clearly bent on doing good.