risk

Describe Asset/Liability Models and explain why it is better than Value-at-Risk Models for Portfolio Management. List SIX (6) Preventable and Unpreventable risk that an organization operating in Ghana is likely to face As a result of the global financial crisis in the early 1980s, the Bank for International Settlements (BIS) set up a panel of eminent bankers to study the global financial system and make recommendations on how to make it more effective, efficient and robust. How have these recommendations assisted in strengthening the global financial and the Ghanaian banking System? In a table form, identify FIVE Key Risks Indicators that AFRICA WORLD AIRLINES, UCC and MTN GHANA face in their operations. On a separate table offer mitigating strategies for each of the identified risks from the previous table. Explain the weaknesses of Basel I Accord, the THREE (3) Pillars in Basel II Accord and the Five (5) identified risk areas under Basel III Accord. And explain why Basel II Accord…

How do you determine the expected return and risk?

I need help matching the defintions with the words, thank you.

In the article “Incorporating Country Risk in the Valuation of offshore Projects”, Lessard references symmetrical and asymmetrical risks in offshore projects. Explain what symmetrical and asymmetrical risks are. Summarize the approach Lessard recommends to deal with asymmetrical risks. How would you address symmetrical risks in an offshore project evaluation?

QUESTION ONE (1) 1) To implement its risk management framework, Quantum Commodity, a cocoa processing company, has recently appointed risk owners and champions for each functional unit. As one of the risk champions, your unit manager (risk owner) has assigned you the following tasks: i. Identify the top six (6) significant risks ii. Conduct a qualitative analysis and prioritize each risk iii. Develop a basic risk register b) Quantum Crude Limited, a Ghanaian Bulk Oil Distribution Company (BDC), plans to import 20 million barrels of crude oil within the next 12 months. The current exchange rate is 1 USD = 15.50 GHS, and crude oil is priced at $120 per barrel. The company has obtained a loan in Ghanaian Cedis, repayable over 60 months, to partially finance this import. With global trends suggesting rising oil prices and further depreciation of the Cedi, and in light of the recent increase in the monetary policy rate (MPR) by the Bank of Ghana's Monetary Policy Committee (MPC), as well as…

Which of the following best explains the role of diversification as part of an investment strategy?   a.Choosing investment vehicles with varying levels of risk/reward   b.Spreading investments out over time   c.Balancing investment amounts with debt amounts   d.Soliciting the opinions of multiple financial planners

A. Briefly explain three risk exposures that an analyst should report as part of anenterprise risk management system.Page 4 of 10B. Define market risk and the economic parameters considered when calculatingmarket risk.C. Explain the concept of ‘beta’ within the framework of the Capital Asset PricingModel (CAPM). Discuss the relevance of the covariance between assets returnsfor an investor wishing to diversify the risk of a portfolio

Suppose that California Co., a U.S.-based MNC that invests in projects all over the world, is analyzing potential projects in various countries in an attempt to pursue diversification. The following graph, which measures risk along the horizontal axis and expected returns along the vertical axis, depicts a point for each potential project in a different country. The blue curve represents the frontier of efficient project portfolios. Use the graph to answer the question that follows. EXPECTED RETURN Frontier of Efficient Project Portfolios True E In comparison to project F, project B has False RISK A expected returns and has ? True or False: A more aggressive firm would prefer a portfolio comprised mostly of projects similar to project E. risk.

Using the data generated in the previous question (Question 1) Plot the Security Market Line (SML) b) Superimpose the CAPM’s required return on the SML c) Indicate which investments will plot on, above and below the SML?

Describe the risk and return profiles of various investment vehicles and theimportance of diversification.

Fill the parts in the above table that are shaded in yellow. You will notice that there are nineline items.  Using the data generated in the previous question (Question 1);a) Plot the Security Market Line (SML) b) Superimpose the CAPM’s required return on the SML c) Indicate which investments will plot on, above and below the SML?d) If an investment’s expected return (mean return) does not plot on the SML, what doesit show? Identify undervalued/overvalued investments from the graph   Please answer A, B, C & D

A. Briefly explain three risk exposures that an analyst should report as part of anenterprise risk management systemB. Define market risk and the economic parameters considered when calculatingmarket risk.C. Explain the concept of ‘beta’ within the framework of the Capital Asset PricingModel (CAPM). Discuss the relevance of the covariance between assets returnsfor an investor wishing to diversify the risk of a portfolio

Which of the following way to classify and measure financial instruments do you favor?  Justify your answer.    IFRS 9: See page 7 of IFRS 9-Project-Summary.pdf.  Then click OK. U.S. GAAP including ASU 2016-01: A summary is on page 3 of Chapter 5 Financial Instruments-3.doc    The first approach proposed by Messrs. Linsmeier and Siegel on pages 182-183 of FASB-ASU No. 2016-01.

Explain the techniques used to measure country risk and financial risk.

(b) Discuss and distinguish the following concepts a. Money markets and capital markets b. Asset Allocation and Asset Selection c Active and passive Investment strategies d. Technical and Fundamental Analysis

Consider the following four risky assets: Country ETF Australia Austria Belgium Canada Risk-free Asset Note the following: Expected Returns 10.00% 15.00% 20.00% 28.00% 6.00% g= Standard Deviation 12.00% 17.00% 25.00% 32.00% 0.00% 1.55201 0.11546 -0.17965 -0.48782 Correlations Australia Austria Belgium Canada Australia 1.00 0.12 0.14 0.65 h = Austria 0.12 1.00 0.33 0.02 -7.58162 1.43095 2.23334 3.91732 Belgium 0.14 0.33 1.00 -0.04 Canada 0.65 0.02 -0.04 1.00 An investor currently has 50% of her money in "Australia" and 50% of her money in "Belgium". However, she wants to create a portfolio with the same expected return as her current portfolio, but with the lowest variance possible using all 4 assets, but not the risk- free asset. What percent of her money should she put into the "Austria" asset to achieve this goal? Answer in decimal format, rounded to 4 decimal places. For example, if your answer is 12.124%, enter "0.1212". If your answer is 12.188%, enter "0.1219".

global risk factors What are some examples of global risk factors? What factors are most prevalent in today’s market? How can one modify investment strategies to account for such risks? (at least 200 word)

What does financial engineering refer to? More than one answer may be correct. Multiple select question. design of new securities financing engineering projects creation of new financial processes financial risk of an engineering project

Travellers Inn (Millions of Dollars) Cash $ 10 Accounts payable $ 10 Accounts 20 Accruals 15 receivable Inventories 20 Short-term debt Current assets $ 50 Current liabilities $ 25 Net fixed assets 50 Long-term debt 30 Preferred stock (50,000 shares) 5 Common equity Common stock (3,800,000 shares) $ 10 Retained earnings 30 Total common equity $ 40 Total assets $100 Total liabilities and equity $100 The following facts also apply to TII: 1. The long-term debt consists of 29,412 bonds, each having a 20-year maturity, semiannual payments, a coupon rate of 7.8%, and a face value of $1,000. Currently, these bonds provide investors with a yield to maturity of 11.8%. If new bonds were sold, they would have an 11.8% yield to maturity. 2. TII's perpetual preferred stock has a $100 par value, pays a quarterly dividend per share of $2, and has a yield to investors of 8%. New perpetual preferred stock would have to provide the same yield to investors, and the company would incur a 3.55% flotation…

How We use quantitative data to manage risk and create investment vehicles?

Which of the following is a risk particular to international funds? Select one: A. Liquidity risk B. Political risk C. Currency risk D. Competition risk

Mention and explain key macro-economic factors that a team of equity analysts would evaluate in fundamental research.

Develop a risk profile for an area of your choice. 1.Identify a commodity you would like to do a risk profile on. 2.Identify 5 potential risks that might affect the commodity in terms of production capacity. 3.Do a risk qualitative assessment by using a Venn-diagram indicating the likelihood %, category, frequency, severity and RHC score for each risk identified.

In a few sentences, answer the following question as completely as you can. According to the CAPM, the expected return on a risky asset depends on three components. Describe each component, and explain the role of each one in determining expected return.