Ex-ante and Replacement cost risk: Difference between pages

Revision as of 14:50, 20 August 2013

The risk of loss arising from the need to replace a contract before having paid away the principal amount.

Often quantified approximately as the expected profit foregone.

@@ Line 1: / Line 1: @@
-Forecast.
+The risk of loss arising from the need to replace a contract before having paid away the principal amount.
+Often quantified approximately as the expected profit foregone.
-:"... the Federal Reserve makes ''ex-ante'' predictions on expected inflation to decide whether to raise or lower interest rates.
-:The prediction is not based on actual data, since the event will occur in the future, and [the Federal Reserve] does not know with certainty how the economic performance will be."
-:''Corporate Finance Institute''
 == See also ==
-* [[Corporate Finance Institute]]
+* [[Credit risk]]
-* [[Ex-post]]
+* [[Principal risk]]
-* [[Federal Reserve]]
-[[Category:The_business_context]]