Explain the term Value at Risk
Explain the term Value at Risk.
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VaR calculations frequently assume that returns are normally distributed in excess of the time horizon of interest. Inputs for a VaR computation will include details of the portfolio composition, parameters and the time horizon governing the distribution of the underlying. The latter set of parameters consists of average growth rate, standard deviations or volatilities and correlations. When the time horizon is short you can avoid the growth rate, as this will only have a small consequence on the last calculation.
What kind of insurance organisations usually takes on the greater risks: a life insurance company or casualty insurance company and a property?
foreign countries to finance its current account deficits
Under what circumstances will warrant’s value be high? Explain.
Given: price of Nokia shares on the Helsinki stock exchange=12 euros, exchange rate=$1.3/euro, price of the ADR on the NYSE=$15 and each foreign share translates into 1 ADR. Show the actions you would take to make risk free arbitrage profits.
Describe Euro-medium-term-note market Normal 0
Illustrates an example of Efficient-market hypothesis?
Describe the three most important sections of the cash flows statement?
Differentiate in brief a defined benefit and a defined contribution pension plan.
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is e
Which factors are important when implementing a Monte Carlo Method?
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