Value at risk

diversification mean? Explain in details and give specific examples special in finance. The term portfolio diversification is defined as “investing in different asset classes and in securities of many issues in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, (or country).” (Nasdaq n.d.) One describes the theory of portfolio diversification as not putting all your eggs in one basket. Portfolio…

MANAGING INTEREST RATE RISK The interest rate risk management is very important and many technical instruments have been developed to understand the interest rate risk. The interest rate risk majorly comes up in interest bearing asset like loan and bonds as there exist a possibility of change in asset’s which is the result of variability of interest rates. FUNDAMENTAL INTEREST RATE CONSIDERATIONS The trading of variable rate loan structure is involved during interest rate swaps having fixed…

Drs. Groopman and Hartzband assert that each of has an unique approach to evaluating the risks and benefits of treatments; Dr. Harpham writes that patients diagnosed with life-threatening diseases can live life to the fullest even while overcoming disease through her three pronged approach of knowledge, action, and hope. Although both books…

can they coexist, but they also serve to strengthen the hero in ways that either set of values could not accomplish on their own. Emily Bartz, an undergraduate student at the Minnesota State University, recognizes the existence of Christian and pagan concepts of heroism coming together throughout Beowulf. “The poet traces a definitive move away from the ancient pagan heroic values to his own Christian heroic values. However, as in the poet’s contemporary culture, certain pagan traditions, such…

The diversification of investment and elimination of unsystematic risk can be achieved first by measuring the level of diversification needed. Diversification can be computed through correlation between returns and of the portfolio and the market portfolio. An absolutely diversified portfolio will correlate accurately with completely diversified market portfolio since only has a systematic risk. Portfolio performance measures are the most important aspects of the investment process. Performance…

radiation dose to the public. Every technologist has the obligation to always ensure that the radiation dose to both the patient and other health care professionals are kept as low as reasonably achievable (ALARA) without compromising the diagnostic value of the image. Cardinal Principles of Radiation Protection All health physics activities in radiology are designed to minimize the radiation exposure of patients and personnel. The three cardinal principles are effective in reducing…

very uncomfortable place. If leaders do not handle this carefully, uncertainty avoidance can have a strong negative influence on employees’ loyalty, and employees can be easily demotivated. One of the best ways to avoid this is to measure employees’ risk tolerance by creating a company event that creates uncertainty issue as a testing. Another way is to have employees answering some sort of personality questionnaires when they first enter the company. That way leaders can have a better…

2. Noise trader risk Noise trader risk refers to the risk that the mispricing worsens in the short run because there is possibility that pessimistic traders become even more pessimistic about the future. Once a position is taken, noise traders may drive prices farther from fundamental value, and the arbitrageur may be forced to invest additional capital, which may not be available, forcing an early liquidation of the position. 3. Information gap and financing issues Generally, the arbitrageurs…

explains financial risk management as a process to deal with the uncertainties resulting from financial markets. It involves assessing the financial risks facing an organization and developing management strategies consistent with internal priorities and policies. Addressing financial risks proactively may provide an organization with a competitive advantage. It also ensures that management, operational staff, stakeholders, and the board of directors are in agreement on key issues of risk.…

1. What are the kinds of compliance failures that would lead to a significant risk to their brand or reputation damage? (For example: do all trucks and equipment meet safety standards and are all drivers adequately trained in the use of trucks and equipment, and do they have a full understanding of the compliance issues that affect them). And are there any failures within FTC which could affect compliance with any aspect of the businesses operations. Or are there any external problems (this is…