Is the risk of a market crash in an emerging economy

Assignment Help Risk Management
Reference no: EM13871683

Russia suffered a currency and stock market crisis in 1998 that drove the dollar value of Russian stocks down to 10 percent of their pre-crash value. The crash caught investors by surprise, including hedge fund managers specializing in emerging markets. One hedge fund manager was quoted in the Financial Times (‘‘Funds Suffer ‘Confiscated' Russian Assets,'' by Eaglesham and Martinson, August 28, 1998, p. 22) as saying:

‘‘If Russia had taken over a plant belonging to General Motors, the government would have done something about it . . . . Essentially, the Russian government has confiscated Western capital, and nobody is doing anything about it.''

Is the risk of a market crash in an emerging economy a political risk or a financial risk? Explain.

Reference no: EM13871683

Questions Cloud

Discuss the assumptions needed for warder : While auditing the 2010 financial statements of Warder Corporation, you found evidence that the following were not included in its current liabilities on the December 31, 2010 balance sheet:
Convince a skeptic : When responding to "Why/Explain" you should give a meaningful answer that would convince a skeptic. Show your work for quantitative questions!
Can a state legislature change the charter of a college : Dartmouth College v. Woodward (17 U. S. 518, 1819). The Issue- Under the Constitution, can a state legislature change the charter of a college
How a community and an ecosystem are related : Describe how a community and an ecosystem are related.Criteria -150 words; cite any source(s) used.
Is the risk of a market crash in an emerging economy : Russia suffered a currency and stock market crisis in 1998 that drove the dollar value of Russian stocks down to 10 percent of their pre-crash value. Is the risk of a market crash in an emerging economy a political risk or a financial risk? Explain..
Describe business-level strategy and explain how it fits : Describe your business-level strategy and explain how it fits with the corporate-level strategy for your organization
Fundamental entropy equation for ds : Starting with the differential form of the fundamental entropy equation for dS (see Eq1 below and the total differential for dU as a function of V and T. Assuming N is constant, derive an equation for dS dependent on only dV and dT. Provide Each s..
Operations issues and improvements : What is and is not the assignment in my view? This discussion creates the boundaries for my term paper - Why are the three OM areas I have selected in need of improvement?
Classify sperm whales as a selected species : Would you classify sperm whales as an r-selected species, a K-selected species, or a species exhibiting both r and K attributes? Defend your answer. Criteria -150 words; cite any source(s) used.

Reviews

Write a Review

Risk Management Questions & Answers

  The process of developing and implementing ergonomics

Through the process of developing and implementing their ergonomics programs these persons have gained a good working knowledge of the ergonomic risk factors that are most likely to be present in their workplaces.

  What is your expected starting salary

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent.

  Hells pass hospital is evaluating an experimental oncology

hells pass hospital is evaluating an experimental oncology treatment. the treatment is currently under review for

  Define hybrid risk assessment methodologies

From the e-Activity, compare and contrast quantitative, qualitative, and hybrid risk assessment methodologies overall. Give one (1) example of when you would use each of the methods over the others. Justify your response.

  Qualitative risk analysis and quantitative risk analysis

Compare and contrast qualitative risk analysis and quantitative risk analysis, and provide at least two (2) examples identifying a situation when each would be useful

  1 provide a brief description of the status of the company

1. provide a brief description of the status of the company that led to its determination that a change was

  Collison 19987 states that attention to the interests of

collison 19987 states that attention to the interests of shareholders above all other groups is implicit in much of

  Vulnerability and attack analysis plan

Vulnerability and Attack Analysis Plan and For this course you will assess an organization, collect information, pinpoint vulnerabilities and come up with an attack plan that should work in theory.

  Estimate the implied equity risk premium in the market

After the 5th year, the growth is expected to drop to 5% in real terms in perpetuity. The risk-less rate is 6%. Estimate the implied equity risk premium in this market.

  The risk register nbspcreate a risk register for the risks

the risk register nbspcreate a risk register for the risks you have identified in each project you have managedare

  Risk management plan for da gardening supplies

Risk management plan for da gardening supplies that address all the point

  Describe the risk assessment techniques

Did you have several highs but no lows and explain. Out of your risks, which ones were qualitative risks opposed to quantitative risks?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd