HomeDefinitionsCompareDebt Risk premium approachThe financial definition for Risk premium approach:A common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns. Similar MatchesCross sectional approachCross sectional approachA statistical methodology applied to a set of firms at a particular time. Debt service parity approachDebt service parity approachPayment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal). Optimization approach to indexingOptimization approach to indexingAn approach to indexing that seeks to optimize some objective, such as to maximize the portfolio yield, to maximize convexity, or to maximize expected total returns. Further SuggestionsResidual dividend approachSignaling approach Stratified sampling approach to indexing Top down approach Variance minimization approach to tracking Click to compare definitions of Risk premium approach Click to view definitions beginning ri |