What does the discount rate in stocks mean? Hello, there is no discount rate for stocks.
Banking generally has discount rate and rediscount rate.
What does the bill discount rate mean? The discount rate is the discount rate.
What is a discount? The holder transfers the bill to the bank for cash by paying certain interest before the bill expires. A form of bank loan. Discount refers to the transfer of the bill to the holder, and the monetary funds prepaid to commercial credit are recovered in advance; For discount companies or banks, it is to provide bank credit to ticket holders. Banks set the discount rate according to the market interest rate and the credit degree of bills, and calculate the discount interest from the discount date to the maturity date of bills. Discount interest = bill denomination × discount rate × bill term. After paying the interest, the holder can get the cash equal to the balance of the face value minus the discount interest from the bank, and the ownership of the bill belongs to the bank.
When the bill expires, the bank will cash the drawer with the bill, and if it is rejected, it can ask the endorser for the fare. According to different levels, bill discount can be divided into discount and rediscount. Commercial banks discount industrial and commercial enterprise bills, and the central bank rediscounts the unexpired industrial and commercial enterprise bills discounted by commercial banks, which is called rediscount or rediscount. The discount rate is formed spontaneously by the change of market capital supply and demand, and the rediscount rate is set by the central bank.
Discounting bills is equivalent to short-term loans provided to holders of unexpired bills. The interest currently charged is also called discount, and the interest rate is called discount rate.
The landlord may not understand what they say, but the landlord who makes soy sauce can ignore it.
Let me tell you briefly: this is my previous answer! You bought a five-year long-term debt of 100 yuan issued by the company. If you get it five years later, you can get 120 yuan. 20% profit. However, you need money urgently now, and you won't cash it until four years later. The firm can only give you 1 15 yuan. You can calculate the discount rate yourself. . Are you clear?
What does the risk-adjusted discount rate mean? Risk-adjusted return on capital (RAROC) is an index used to measure the risk of obtaining returns and an effective tool to measure the financial performance after risk adjustment.
It provides a unified standard for measuring income between different enterprises/departments. Risk-adjusted return on capital (RAROC) and its related concepts, such as risk-adjusted return on capital (RORAC) and risk-adjusted return on capital (RARORAC), as the main indicators to measure risk return, are mainly used in banks and insurance. In short, RAROC is the ratio of risk-adjusted rate of return to venture capital.
According to the actual situation in China, in 2002, the People's Bank of China formulated "Guidelines for Provision for Loan Losses", requiring all banks to withdraw all kinds of loan losses in full and on time in 2005. But at present, all banks have not set aside enough special reserves, and the total profits of all banks have not been deducted from the special reserves that should be set aside. Therefore, the risk-adjusted return on assets of commercial banks in China can be obtained by the following methods: RAROC= total profit after risk adjustment ÷ average balance of assets.
Total profit after risk adjustment = current year's profit of the Bank+actual increase of accrued reserves this year+decrease of accrued reserves.
Using this method to calculate the RAROC before the special reserve is not fully withdrawn, all banks can evaluate the reserve increase that should be withdrawn in the current year under the same comparison caliber. In the future, with the deepening of the reform of commercial banks in China and the improvement of market economy, China's RAROC model will be in line with international standards and truly become the core technical means of risk management of commercial banks in China.
What does "rediscount rate" mean? The rediscount rate is the withholding rate when commercial banks apply to the central bank for discounted bills. Re-discussion means that commercial banks apply for loans from the central bank, thereby increasing the money supply and directly increasing the money supply. The discount rate not only directly determines the discount amount, but also indirectly affects the discount demand of commercial banks, thus affecting the discount scale as a whole.
major function
1. As one of the three traditional policy measures of the central bank to curb the money supply, it is easier to operate than the statutory reserve ratio and open market business. The fluctuation degree caused by rediscount rate is far less than the statutory reserve ratio, so central banks in various countries usually control the money supply by adjusting rediscount rate.
2. As the benchmark interest rate of a country, the rediscount interest rate restricts and affects the national interest rate level, and its change determines or affects the change of other interest rates, which is the basis for the adjustment or change of other interest rates. The reason why commercial banks want to rediscount is generally because commercial banks are short of funds. If the rediscount rate is low, the cost of obtaining funds for commercial banks will be low, and the market interest rate will be low; On the contrary, it means that the central bank's capital supply is tightening and the market interest rate may rise. In commercial banking, the proportion of bill discount is very large, especially in developed countries.
3. As the reference standard of the capital cost of commercial banks, the rediscount rate of the central bank is the lowest loan interest rate in the interest rate system. The rediscount rate stipulated by the central bank affects the financing direction of commercial banks, and actually becomes one of the standards to measure the capital cost of commercial banks. When a country suffers from inflation or needs to tighten the money supply for other reasons, the central bank will correspondingly increase the cost of providing funds for commercial banks by raising the rediscount rate, that is, reduce its reserve for determining the credit scale, so that commercial banks can shrink the credit scale to achieve the purpose of tightening the money supply. If a country needs to expand the money supply due to economic recession or other reasons, the central bank will reduce the rediscount rate to encourage commercial banks to increase their loans to the central bank, thus expanding the scale of lending and increasing the money supply.
What does the risk-adjusted discount rate mean? Hello, classmate, I'm glad to answer your question!
The word you said belongs to the vocabulary of the futures industry. Mastering the vocabulary of futures industry can make you feel at home in the study of futures industry. The translation and meaning of this term are as follows: in portfolio theory and capital budget analysis, the discount rate used to calculate the present value of uncertain or risky income streams is generally equal to the risk-free interest rate (mostly using the yield of short-term US Treasury bonds) plus the risk premium of a specific investment or project. This risk premium is determined according to the risk characteristics of the investment or project.
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The term risk-adjusted discount rate is one of the core words of CMA. Learning the core words of CMA well will help you learn like a duck to water. This word means that in portfolio theory and capital budget analysis, the discount rate used to calculate the present value of uncertain or risky income streams is generally equal to the risk-free rate (mostly using the yield of short-term US Treasury bonds) plus the risk premium of a specific investment or project, which is determined according to the risk characteristics of the investment or project.
What does the risk-adjusted discount rate mean? Risk-adjusted discount rate (RADR) is a method that combines the net present value method with the capital asset pricing model, and uses the model to adjust the benchmark discount rate according to the risk degree of the project.
Advantages of risk-adjusted discount rate method:
1, in a competitive market environment, the investment risk is determined by the overall economic situation, and the method of investing in multiple projects may not necessarily reduce the market risk.
2. In the traditional resource planning, as long as the public utilities invest cautiously and there is demand for electricity produced at the set price, the capital cost will not be risky.
3. The risk-adjusted discount rate method is more accurate than the public enterprise in determining the capital cost of a specific project or comprehensive resource planning.
Disadvantages of risk-adjusted discount rate method:
1, mixing time value and risk value, and discounting cash flow accordingly, which means that risk increases with time and exaggerates long-term risk.
2, the project investment is often the initial investment, the whole life cycle recovery, it is difficult to calculate the necessary rate of return for each year. The traditional risk-adjusted discount rate method assumes that the necessary rate of return is the same every year, which is unreasonable.
3. In the competitive power generation market, investors will make up for the losses caused by possible overproduction through risk premium.