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Even if all companies in the world were to use IFRS, what are two obstacles to the worldwide comparability of financial statements?
Which of the following statements most accurately reflects characteristics of a reverse floater (with no options attached)?
Which of the following mortgage-backed securities has a negative duration?
What are three countries that do not allow domestic publicly traded companies to use IFRS to prepare consolidated financial statements?
The Chief Risk Officer (CRO) wants to estimate the bank's total risk by adding up the regulatory capital for market risk, credit risk, and operational risk. The CRO asks you to identify the problems
When evaluating asset-backed securitization issues, which of the following would be least important during the investor's analysis process?
If Peoples Company had net income of $390,000 in 2014 and it experienced a 24.5% increase in net income for 2015, what is its net income for 2015?
Under the Basel II Capital Accord, banks that have obtained prior regulatory approval can use the internal models approach to estimate their market risk capital requirement. What approach or methodo
Hizar Company, a retail store, has an accounts receivable turnover of 4.5 times. The industry average is 12.5 times. Does Hizar have a collection problem with its accounts receivable?
Which of the following best describes the quantitative parameters of the Internal Models Approach?
How is the process of convergence with IASB standards as followed by the FASB different from the adoption of IFRS as occurred in the European Union?
What is the best definition of tier 1 regulatory capital?
What are the two extreme approaches that a company might follow in determining appropriate accounting policies for preparing its initial set of IFRS financial statements?
The bank you work for has a RAROC model. The RAROC model, computed for each specific activity, measures the ratio of the expected yearly net income to the yearly VAR risk estimate
Assay expenses at the time of sale are expected to total $400. What is your 10-year (not annualized) holding period return on this investment?
The following is not a problem of having one employee perform trading functions and back-office functions.
Which of the following is nota proper practice of risk management and control for a financial institution with assets in excess of $100 million?
A five-year plain-vanilla IDR/USD cross-currency swap between the bank and counterparty A where the bank is USD interest rate receiver.
Large banks typically allocate risk capital for credit, operational, and market/ALM risks. Which of the following statements ranks the typical amount of risk capital allocated to these different ris
The price-earnings ratio of General Motors (automobile builder) was 8, and the price-earnings ratio of Microsoft (computer software) was 38. Which company did the stock market favor? Explain.
The failure of Barings Bank is a typical example of a lack in control pertaining to which one of the following risks:
Suppose the beta of a firm"s assets is k and the tax rate is 40%. What is the debt-to-equity ratio if the beta of the equity is 4 times the beta of the assets?
Suppose Portfolio A has an expected return of 8%, volatility of 20%, and beta of 0.5. Suppose the market has an expected return of 10% and volatility of 25%. Finally, suppose the risk-free rate is 5
Calculate the stock in the beginning. Cost of goods sold Rs 72,000; Purchases Rs 40,000; Closing Stock Rs 4,000; Direct wages Rs 10,000;
An analyst at CAPM Research Inc. is projecting a return of 21% on Portfolio A. The market risk premium is 11%,the volatility of the market portfolio is 14%, and the risk-free rate is 4.5%. Portfolio