Examlex
Which of the following is a mnemonic technique?
Certainty Equivalent Approach
A method of evaluating investments by adjusting future cash flows to reflect the risk, converting them into certain cash flows in present value terms.
Overlay Approach
A strategy used in investing that manages risk by using various hedging techniques to achieve a desired exposure.
Certainty Equivalent Factor
A concept used in finance to adjust the future cash flows of an investment to account for risk, essentially converting them into a guaranteed cash flow that an investor would accept in place of holding a risky asset.
Value Range
The spread between the highest and lowest values of a financial asset, indicating its volatility and potential for profit or loss.
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