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In accounting terms, future pension liabilities are discounted using a corporate bond yield so that a higher bond weighting reduces the volatility of a scheme's funding ratio.
Their option writing strategy creates distributable income above what the stock portfolio would yield and also reduces the volatility of fund share price.
In the context of a GARCH-in-Mean model, we show that both solar and wind power Granger cause electricity prices, that solar power generation reduces the volatility of electricity prices by scaling down the use of peak-load power plants, and that wind power generation increases the volatility of electricity prices by challenging electricity market flexibility.
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The crème de cassis and sugar seem to reduce the volatility of the champagne.
The diversification helps reduce the volatility of emerging markets and other risks like currency fluctuations.
Some schools are trying to reduce the volatility by cutting their dependence on their endowments.
"We think that alone will significantly reduce the volatility of earnings associated with that business".
That, in turn, should reduce the volatility on their balance sheets.
The central bank, by controlling inflation, can dramatically reduce the volatility of business cycles.
Frits Bolkestein, the European Union commissioner for internal markets, demanded changes to reduce the volatility stemming from the rule and to help banks explain away some of the remaining volatility.
That should reduce the volatility not just of the oil price but also of the world economy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com