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- The slope of the security market line cannot be negative. Begin your answer with Consistent or Inconsistent followed by your explanation.Explain how does expected shortfall concept differ from value at riskWhich of the following statements about payback (payback period) is most correct? a. Payback is a measure of time breakeven. b. Payback is a rough measure of risk. c. Payback is a rough measure of liquidity. d. Both a. and b. are correct. e. Answers a., b., and c. are all correct.
- which of the following risks is most closely associated with off balance sheet? trading risk liquidity risk credit risk interest rate riskExplain Minsky’s Financial Instability Hypothesis and mention the assumptions of the model.I. Explain the tradeoff between the costs of having too much liquidity on the one hand and financial distress and insolvency on the other hand. II. What gives rise to, or causes, each. III. Give an example explaining both.