replicating portfolio

English - English

Definition of replicating portfolio in English English dictionary

In the valuation of a life insurance company, the actuary considers a series of future uncertain cashflows (including incoming premiums and outgoing claims, for example) and attempts to put a value on these cashflows. There are many ways of calculating such a value (such as a net premium valuation), but these approaches are often arbitrary in that the interest rate chosen for discounting is itself rather arbitrarily chosen

Hyphenation

replicating port·fo·li·o

Turkish pronunciation

replîkeytîng pôrtfōliō

Pronunciation

/ˈrepləˌkātəɴɢ pôrtˈfōlēˌō/ /ˈrɛplɪˌkeɪtɪŋ pɔːrtˈfoʊliːˌoʊ/