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Volatility Skew – Understanding the Concept and Its Implications In financial markets, volatility skew refers to the uneven distribution of implied volatility across different option strike prices. It is a measure of the market’s perception of potential risks and future price movements. Understanding volatility skew is crucial for option traders and investors as it provides… Continue reading Volatility Skew

The top trends in corporate social responsibility are sustainability, employee engagement, and stakeholder collaboration. Corporate social responsibility (CSR) has become an integral part of business strategy, with companies focusing on sustainable practices, involving employees in CSR initiatives, and collaborating with stakeholders to drive positive social and environmental impact. As awareness and concern about social and… Continue reading What Are Top Trends in Corporate Social Responsibility?

When interest rates decrease, bond prices rise. This is because existing bonds offer a higher yield compared to new ones. Investors often seek safe and stable investment options, and bonds are considered a secure choice. Understanding what causes bond prices to rise is crucial for investors and financial professionals. Factors such as changes in interest… Continue reading What Causes Bonds Price Rise

Interest rates directly impact mutual funds by influencing the cost of borrowing, which affects the fund’s returns and overall performance. Mutual funds typically invest in various financial instruments, such as bonds and loans, and changes in interest rates can affect the value of these investments. When interest rates rise, bond prices typically fall, leading to… Continue reading How Do Interest Rates Affect Mutual Funds?

Risk-averse investors should buy securities such as government bonds, blue-chip stocks, and treasury bills that offer stable returns and lower risk. These types of securities are less volatile and provide a steady stream of income, making them suitable for investors who prioritize the preservation of capital. Investing in securities can be a prudent way to… Continue reading What Kind Securities Should Riskaverse Investor Buy