All other correlations are zero calculate the total, Financial Accounting

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All other correlations are zero calculate the total

The correlation between market risk and credit risk in the same business unit is 0.3.

The correlation between credit risk in one business unit and credit risk in another is 0.7.

The correlation between market risk in one business unit and market risk in the other is 0.2.

All other correlations are zero. Calculate the total economic capital. How much should be allocated to each business unit?

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Financial Accounting: All other correlations are zero calculate the total

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Financial Accounting: All other correlations are zero calculate the total

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