The extra return over the risk-free rate expected by investors to compensate them for holding an asset with a certain degree of volatility. This is a crucial element in programming a long-term asset mix. A polarised spectrum which represents how higher expected rewards generally accompany increases in risk. The left end of the spectrum represents the lowest risk investments with the right of the spectrum illustrating an incremental increase in risk, with parallel increases in returns. The weighting of percentages to forms of investments, which indicate their degree of risk.
Banks use risk weighting to calculate the capital adequacy standard to be observed for lending.
The transfer of a termination payment from a superannuation fund into a approved deposit fund, or deferred annuity prior to retirement in order to defer or avoid lump sum tax. It can also apply to the renewal of a bank loan or extension of a deposit at defined intervals, with revised interest rate levels. A mandatory form notifying the Tax Office and former employer that an eligible termination payment is being rolled over. A futures transaction involving both a purchase and a subsequent sale, or a sale and a subsequent liquidated purchase. An incorporated sum paid to an asset's owner as compensation for the asset's use.