Maximum downside exposure

In financial investment, the maximum downside exposure (MDE) values the maximum downside to an investment portfolio. In other words, it states the most that the portfolio could lose in the event of a catastrophe. As such, MDE obviates the need to worry about the market's unpredictable swings as it virtually "eliminates" downside surprises. The formula:

MDE = unhedged exposure/total portfolio value.

(For example, if half of the funds are in inflation-protected cash, and the other half in stocks, the portfolio could not lose more than 50% – the portfolio's MDE.)

The main benefit of MDE is that – unlike probabilistic risk models (such as VaR) – it appropriately factors in all risks to the portfolio without looking at historical (and often erroneous) data and relying on simplistic statistical assumptions that don't correspond to the real world. This makes MDE a very robust risk management tool.[1][2]

References

  1. ^ Marjanovic, Boris (18 November 2015). "What Turkeys Can Teach Us About Risk Management". Seeking Alpha. Retrieved 18 November 2015.
  2. ^ Nocera, Joe (2 January 2009). "Risk Mismanagement". The New York Times. Retrieved 19 November 2015.


Stub icon

This business-related article is a stub. You can help Wikipedia by expanding it.

Read other articles:

Doaa al-Karawan

The Nightingale's PrayerSampul DVD Doaa al-KarawanSutradaraHenry BarakatProduserBarakat FilmDitulis olehTaha Hussein (novel)Youssef GoharHenry BarakatPemeranFaten HamamaAhmed MazharPenata musikAndrè RyderSinematograferWahid FaridTanggal rilis 1959 (1959) Durasi126 menitNegaraMesirBahasaArab The Nightingale's Prayer (Arab: دعاء الكروانcode: ar is deprecated , translit. Doaa al-Karawan simakⓘ) adalah sebuah film drama klasik Mesir 1959 yang disutradarai oleh Henry ...

 

 

Aroutz 1

Aroutz 1 הערוץ הראשוןCaractéristiquesCréation 2 mai 1968Disparition 10 mai 2017Propriétaire Israel Broadcasting AuthorityLangue HébreuPays IsraëlStatut Généraliste nationale publiqueSiège social Israel Broadcasting Authority 161 Jaffa Road JérusalemAncien nom HaTelevizia HaIsraelit (1968-1994)Site web iba.org.ilmodifier - modifier le code - modifier Wikidata Aroutz 1 (en hébreu הערוץ הראשון, HaArouts HaRishon, litt. « La première chaîne » ; e...

 

 

Mycroft Holmes

Mycroft HolmesTokoh Sherlock HolmesPenampilanperdanaPenerjemah Bahasa YunaniPenampilanterakhirKasus Pencurian Rancangan Kapal Selam Bruce-PartingtonPenciptaSir Arthur Conan DoyleInformasiJenis kelaminLaki-lakiPekerjaanPejabat pemerintahKerabatSherlock Holmes (adik)Kewarganegaraan Britania Raya Mycroft Holmes sebagaimana diilustrasikan oleh Sidney Paget. Mycroft Holmes adalah tokoh fiksi dalam cerita-cerita pendek bertokoh utama Sherlock Holmes karya Sir Arthur Conan Doyle. Ia adalah kaka...

Wellington

Pour les articles homonymes, voir Wellington (homonymie). Wellington Te Whanganui-a-Tara[1] De haut en bas, de gauche à droite : vue du port de Wellington, le funiculaire, le parlement, Cuba Street et sa Bucket Fountain, la bibliothèque nationale. Administration Pays Nouvelle-Zélande Île Île du Nord Région Wellington Autorité territoriale Conseil communal de Wellington Maire Mandat Tory Whanau 2022-2025 Démographie Population 202 000 hab. (2018[2]) Densité 697 ha...

 

 

Pilot certification in the United States

Pilot certification This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: Pilot certification in the United States – news · newspapers · books · scholar · JSTOR (April 2023) (Learn how and when to remove this template message) Front side of an airman certificate issued by the FAA. Back side of an airman certificat...

 

 

Pavilion of Prince Teng

Tower in Nanchang, China Front view of the reconstructed Pavilion of Prince Teng Pavilion of Prince TengPavilion of Prince Teng in Simplified (top) and Traditional (bottom) Chinese charactersTraditional Chinese滕王閣Simplified Chinese滕王阁TranscriptionsStandard MandarinHanyu PinyinTéngwáng GéIPA[tʰə̌ŋ.wǎŋ kɤ̌]Yue: CantoneseYale RomanizationTàhng-wòhng gokJyutpingTang4 Wong4 Gok3IPA[tʰɐŋ˩.wɔːŋ˩ kɔːk̚˧] The Pavilion of Prince Teng (tra...

コルク

この記事は検証可能な参考文献や出典が全く示されていないか、不十分です。出典を追加して記事の信頼性向上にご協力ください。（このテンプレートの使い方）出典検索?: コルク – ニュース · 書籍 · スカラー · CiNii · J-STAGE · NDL · dlib.jp · ジャパンサーチ · TWL（2017年4月） コルクを打ち抜いて作った瓶の栓 コルク（木栓、�...

 

 

Mapusaurus

Mapusaurus Fosil Mapusaurus Klasifikasi ilmiah Kerajaan: Animalia Filum: Chordata Kelas: Reptilia Superordo: Dinosauria Ordo: Saurischia Subordo: Theropoda Superfamili: †Carnosauria Famili: †Carcharodontosauridae Genus: MapusaurusCoria & Currie, 2006 Spesies Mapusaurus (tipe)Rodolfo, 2006 Mapusaurus adalah salah satu Dinosaurus karnivora theropoda yang hidup pada zaman kapur. Panjang tubuh 13 meter, dan termasuk dinosaurus karnivora terbesar di dunia. Mempunyai kekerabatan dengan Car...

 

 

أتراك

هذه المقالة عن المجموعة العرقية الأتراك وليس عن من يحملون جنسية الجمهورية التركية أتراكTürkler (بالتركية) التعداد الكليالتعداد 70~83 مليون نسمةمناطق الوجود المميزةالبلد  القائمة ... تركياألمانياسورياالعراقبلغارياالولايات المتحدةفرنساالمملكة المتحدةهولنداالنمساأسترالي�...

2016年美國總統選舉

2016年美國總統選舉 ← 2012 2016年11月8日 2020 → 538個選舉人團席位獲勝需270票民意調查投票率55.7%[1][2] ▲ 0.8 %   获提名人 唐納·川普 希拉莉·克林頓 政党 共和黨 民主党 家鄉州 紐約州 紐約州 竞选搭档 迈克·彭斯 蒂姆·凱恩 选举人票 304[3][4][註 1] 227[5] 胜出州/省 30 + 緬-2 20 + DC 民選得票 62,984,828[6] 65,853,514[6]...

 

 

土库曼斯坦总统

土库曼斯坦总统土库曼斯坦国徽土库曼斯坦总统旗現任谢尔达尔·别尔德穆哈梅多夫自2022年3月19日官邸阿什哈巴德总统府（Oguzkhan Presidential Palace）機關所在地阿什哈巴德任命者直接选举任期7年，可连选连任首任萨帕尔穆拉特·尼亚佐夫设立1991年10月27日 土库曼斯坦土库曼斯坦政府与政治 国家政府 土库曼斯坦宪法 国旗 国徽 国歌 立法機關（英语：National Council of Turkmenistan） ...

 

 

ヨハネス12世 (ローマ教皇)

ヨハネス12世 第130代 ローマ教皇 教皇就任 955年12月16日教皇離任 964年5月14日先代 アガペトゥス2世次代 レオ8世個人情報出生 937年スポレート公国（中部イタリア）スポレート死去 964年5月14日 教皇領、ローマ原国籍 スポレート公国親 父アルベリーコ2世（スポレート公）、母アルダその他のヨハネステンプレートを表示 ヨハネス12世（Ioannes XII、937年 - 964年5月14日）は、ロ...

Susanne Andersen

Norwegian cyclist (born 1998) Susanne AndersenAndersen at the 2018 European Road Cycling Championships.Personal informationFull nameSusanne AndersenBorn (1998-07-23) 23 July 1998 (age 25)Stavanger, NorwayTeam informationCurrent teamTeam dsm–firmenich PostNLDisciplineRoadRoleRiderAmateur team2012–2016Stavanger SK Professional teams2016–2018Team Hitec Products2019–2021Team Sunweb[1][2]2022-Uno-X Pro Cycling Team Medal record Representing  Norway Women...

 

 

ايمي ويلرتون

ايمي ويلرتون ايمي ويلرتون خلال حفل توزيع جوائز ذا صن ميلتري 2013 معلومات شخصية الاسم عند الميلاد ايمي ويلرتون الميلاد 18 أغسطس 1992 (العمر 31 سنة)بريستول، إنجلترا الجنسية المملكة المتحدة  اللغات المحكية الإنجليزية  الطول 1.75 م (5 قدم 9 بوصة) لون الشعر شقراء لون العيون ...

 

 

Cleveland Browns

Cleveland Browns Musim saat iniDidirikan 4 Juni 1944Bermain di Stadion FirstEnergyCleveland, OhioKantor pusat di Cleveland BrownsTraining and Administrative ComplexBerea, Ohio Cleveland Browns logoCleveland Browns wordmarkLogoWordmarkAfiliasi liga All-America Football Conference (1946–49) Western Division (1946–48) National Football League (1950–sekarang) American Conference (1950–52) Eastern Conference (1953–69) Century Division (1967–69) American Football Conference (1970–...

Molecular engineering

Field of study in molecular properties Molecular engineering is an emerging field of study concerned with the design and testing of molecular properties, behavior and interactions in order to assemble better materials, systems, and processes for specific functions. This approach, in which observable properties of a macroscopic system are influenced by direct alteration of a molecular structure, falls into the broader category of “bottom-up” design. Molecular engineering deals with materia...

 

 

Dialetto osimano

Voci principali: Osimo, Dialetti marchigiani. Dialetto OsimanoOsemàParlato inItaliaGruppi di emigrati osimani all'estero (Argentina, Belgio, Germania, Canada, USA) RegioniMarche Provincia di Ancona: Osimo, Osimo Stazione, Offagna LocutoriTotale~40.000 ClassificaNon nelle prime 100 TassonomiaFilogenesiIndoeuropee Italiche  Romanze   mediani    Dialetto osimano Statuto ufficialeUfficiale in- Regolato danessuna regolazione ufficiale Estrat...

 

 

Baotou railway station

Railway station in Baotou, China Baotou包头General informationLocationA'erding Dajie, Kundulun District, Baotou, Inner MongoliaChinaCoordinates40°36′18″N 109°49′49″E / 40.60500°N 109.83028°E / 40.60500; 109.83028Operated by CR HohhotLine(s)Jingbao Railway,Baolan Railway (包兰铁路),Baobai Railway (包白铁路),Baoshen Railway (包神铁路)Baotou–Xi'an railwayBaotou–Yinchuan high-speed railway (under construction)Platforms3Connections Bus terminal...

Bosio II Sforza di Santa Fiora

Bosio II Sforza. A questa voce o sezione va aggiunto il template sinottico {{Militare}} Puoi aggiungere e riempire il template secondo le istruzioni e poi rimuovere questo avviso. Se non sei in grado di riempirlo in buona parte, non fare nulla; non inserire template vuoti. Bosio II Sforza di Santa Fiora, XI conte di Santa Fiora (Santa Fiora, ... – 31 agosto 1535[1]), è stato un nobile e militare italiano. Stemma dei conti di Santa Fiora Indice 1 Biografia 2 Disc...

 

 

Coppa del Re 1911

Coppa del Re 1911Campionato di Spagna 1911 Competizione Copa del Rey Sport Calcio Edizione 10ª Organizzatore Federazione calcistica di Madrid Date 9 aprile 1911 - 15 aprile 1911 Luogo  Spagna Partecipanti 10 Formula eliminazione diretta Risultati Vincitore  Athletic Bilbao(4º titolo) Secondo  Espanyol Statistiche Incontri disputati 8 Gol segnati 27 (3,38 per incontro) Cronologia della competizione 1910 1912 Manuale La Copa del Rey 1911 fu la decima edizione della Coppa ...