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Deleveraging Is the Process of Reducing Leverage,and Therefore Reducing the Risk

question 110

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Deleveraging is the process of reducing leverage,and therefore reducing the risk to capital from any further declines in asset prices.


Definitions:

Type of Analytics

Refers to the various approaches of analyzing data, such as descriptive, diagnostic, predictive, and prescriptive analytics.

Models

Simplified representations of complex realities to predict or analyze behaviors and events.

Action

In the context of decision-making or behavior, the process or act of doing something towards achieving a specific result or outcome.

Random Sample

A subset of a statistical population in which each member has an equal chance of being chosen.

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