The role of risk managers is to: A. Make prophetic forecasts C. Produce a point estimate of the U.S. Dollar/Euro exchange rate D. Take a defensive posture B. Uncover sources of risk and make them visible
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The role of risk managers is to:
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- Consider risk mitigation strategies while analyzing foreign financial statements.Which of the following refers to the Sharpe performance measure? It measures the sensitivity of a national market to world market movements. It shows an increase in the portfolio return at international level. It reflects the increase in the portfolio return at domestic-equivalent risk level. It estimates the excess return per standard deviation risk.Country risk, is also referred to as _____? a. Currency risk b. Political risk c. Market risk d. Liquidity risk. **************************** correct answer please.
- Which of the following is a risk particular to international funds? Select one: A. Liquidity risk B. Political risk C. Currency risk D. Competition riskDiscuss risk mitigation strategies for foreign financial statement analysis.From the perspective of the treasury professional, which of the following is a type of market risk but is NOT a type of financial risk? Commodity price risk Equity price risk Interest rate risk Foreign exchange (FX) risk
- Reflect on the following areas on financial risk management: 1.Volatility of foreign exchange 2.Volatility of commodity, prices and interest rates 3. Also reflect on these areas on risk management process: fowards, futures,swaps, options and hybrid securitiesIn the single-index model represented by the equation ri = E(ri) + βiF + ei, the term ei represents A. the impact of anticipated firm-specific events on security i's return. B. the impact of changes in the market on security i's return. C. the impact of unanticipated macroeconomic events on security i's return. D. the impact of anticipated macroeconomic events on security i's return. E. the impact of unanticipated firm-specific events on security i's return.Which of the following forecasting techniques would best represent the sole use of the pattern of historical currency values of the euro to predict the euro's future currency value? A. fundamental forecasting. B. market-based forecasting. C. mixed forecasting. D. technical forecasting.
- Which of the following risks is also known as market risk? a.interest rate risk b. systematic risk c. foreign exchange rate risk d. inflation rate riskThe risks below faced the financial institutions: Credit Risk Liquidity Risk Interest Rate Risk Off-Balance-Sheet Risk Market Risk Foreign Exchange Risk Sovereign Risk Technology Risk Operational Risk FinTech Risk Insolvency Risk What causes these risks, and How to mitigate them? I understand these risks are interdependent to each others.Need a detailed and long self explanatory solution for the following questions What are the three types of risk that a global company is exposed to as a consequence of currency fluctuations? Please provide referred sources