--%>

How is the risk into portfolio measured in Crash Metrics

How is the risk into portfolio measured in Crash Metrics?

E

Expert

Verified

In Crash Metrics that risk in portfolio, which is measured as the worst case over some range of equity moves as:

Worst-case loss = min-δS-≤δS≤δS+ F(δS).

   Related Questions in Financial Management

  • Q : Define International Finance

    International Finance: It is the branch of economics which studies the dynamics of exchange rates, foreign investment, and how such affect international trade. International finance activities aid organizations emp

  • Q : Calculate annual mortgage payment

    Question 1 You just took out a variable-rate mortgage on your new home. The mortgage value is $100,000, the term is 30 years, and initially the interest rate is 8%. The interest rate is fixed for

  • Q : What is rehedging the portfolio What is

    What is rehedging the portfolio?

  • Q : What is forward equation What is

    What is forward equation?

  • Q : Example of Risk-Neutral Valuation Work

    A stock whose value is now $44.75 is growing on average by 15 percent per annum. Its volatility is 22 percent. The interest rate is 4 percent. You need to value a call option along with a strike of $45, expiring in two months’ time. So, what can you do?

  • Q : Reason for not issuing 1 million dollar

    What is the reason that a company would probably not issue $1 million worth of fresh common stock in January to evade all short-term borrowing during the year?

  • Q : How is Poisson process defined How is

    How is Poisson process defined?

  • Q : What are the characteristics of

    What are the characteristics of calibration?

  • Q : Question on unbiased predictor and

    The March 2000 Mexican peso futures contract holds a price of $0.11695. You believe the march spot price will be $0.08500. In which speculative location would you enter to try to earn profit from your beliefs? Illustrates your anticipated profits letting yo

  • Q : Example of Margin Hedging in

    Explain an example of Margin Hedging in Metallgesellschaft and Long Term Capital Management.