Discuss the advantages and disadvantages of using var

Assignment Help Risk Management
Reference no: EM131478521

Question: 1. Discuss the advantages and disadvantages of using VaR as a risk measurement.

2. Discuss the consequences of using drawdown to evaluate a manager's ability.

Reference no: EM131478521

Questions Cloud

Discuss the unique characteristics of two risk management : Discuss the unique characteristics of two risk management objectives on risk manager's wish lists.
Analysing essay questions : Find one of the articles from the List of Essay Resources that has been loaded in week three Study Desk. You can either use EBSCOHOST or Google Scholar to locate the article
Identify which ratios are moving significantly : Identify which ratios are moving significantly. Ratios which are moving are telling you story of your company. Also, compare Nordstrom's ratios to the industry.
Explanation of respective outcomes reached by courts in case : HI6028 Taxation, Theory, Practice & Law Assignment. Explanations of the respective outcomes reached by the courts in the following cases
Discuss the advantages and disadvantages of using var : Discuss the consequences of using drawdown to evaluate a manager's ability.
What process lacks to be consistent with financial theory : Discuss why considering performance attribution alone can be misleading in evaluating portfolio performance. Identify what the process lacks to be consistent.
Conduct a review of the current academic literature : Conduct a review of the current academic literature on their topic and prepare an annotated bibliography of the 15-20 most useful and relevant sources.
What is the tracking error volatility : Discuss why risk attribution is defined by tracking-error volatility decomposition and not by volatility decomposition.
Discuss different decompositions of the standard deviation : Discuss an issue arising when undertaking risk-adjusted performance attribution.

Reviews

Write a Review

Risk Management Questions & Answers

  Explain what accounting entries would be done

Suppose that a firm engages in a derivative transaction that qualifies for fair value hedging. Explain what accounting entries would be done and how the firm's earnings and balance sheet would be affected.

  How dealer use repo market for financing security purchase

An option dealer needs to finance the purchase of a security and holds an inventory of U.S. Treasury bills. Explain how the dealer can use the repo market for financing the security purchase.

  List and describe four methods for identifying risks

List and describe four methods for identifying risks

  The most popular way for international expansion is for a

the most popular way for international expansion is for a local firm to acquire foreign companies. one of the most

  Apply vulnerability assessment technique to your enterprise

RSK80004 Introduction to Risk and Due Diligence - The purpose is to demonstrate that all reasonable practical precautions are in place based on the balance of the significance of the risk vs the effort required to reduce it.

  What did the risk manager mean

During a "hard" insurance market, a manufacturing company decided to self-insure its workers compensation loss exposure. What did the risk manager mean?

  Determine the present value

Determine the present value (PV) if $15,000 is to be received at the end of eight years and the discount rate is 9 percent.

  What has been the lending strategy followed by santander

What has been the lending strategy followed by Santander? Are lending decisions based on the credit background of the borrower, or on the riskiness of the venture?

  Discuss the concept of risk

What are the sources of error in estimating the value of a share of stock?Which is most likely to be accurate: the computed price of a share of stock or the computed price of a bond?

  Issue new stock to finance its capital budget

Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%, its tax rate is 40%, a year, the price of the stock is $15.00 per share, the flotation ..

  Prepare a risk assessment and risk treatment in clause

Prepare a Risk Assessment (RA) and Risk Treatment (RT) in accordance with Clause 5.4 and 5.5 of AS/NZS ISO 31000:2009, using SA/SNZ HB 436:2013 and IEC/ISO 31010:2009.

  Write the introduction to the risk management plan

Write the introduction to the risk management plan exploring the risks types and risk trends associated with the banking industry with a particular emphasis on a publicly traded bank.

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