Explain the term Value at Risk
Explain the term Value at Risk.
Expert
VaR calculations frequently assume that returns are normally distributed in excess of the time horizon of interest. Inputs for a VaR computation will include details of the portfolio composition, parameters and the time horizon governing the distribution of the underlying. The latter set of parameters consists of average growth rate, standard deviations or volatilities and correlations. When the time horizon is short you can avoid the growth rate, as this will only have a small consequence on the last calculation.
When we can use Monte Carlo numerical method?
Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding
Explain different types of hedge.
venture capital valuation method a venture capitalist wants to estimate the value of a new venture. the venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at 1,600,000.00. A publicly traded competitor or comparable firm has current ea
Explain the difference between mortgage bond and a debenture?
A CD/$ bank trader is at present quoting a small figure bid-ask of 35-40, while the rest of the market is trading at CD1.3436-CD1.3441. What is implied regarding the trader's beliefs by his prices?The trader have to think the Canadian dollar wi
Elucidate the factors which affect the choice of a minimum cash balance amount.
What is marking to market straightforward?
What are the difference between CAPM and APT?
What are the ways to make the financial trades on an organized exchange?
18,76,764
1933906 Asked
3,689
Active Tutors
1456400
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!