Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You have been freshly hired and your line manager is asking you to use the duration model in order to assess the interest rate risk related to the loan portfolio. describe what is the duration model? As duration is a linear approach, how can you improve its inaccuracy and its weakness in evaluating value-at-risk?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M925679

Have any Question? 


Related Questions in Basic Finance

A poll conducted by the new york times shows candidate a

A poll conducted by the New York Times shows candidate A leading candidate B by 33 to 31 percent. A poll conducted by the Washington Post shows candidate B leading candidate A by 34 to 32 percent. If the margin of error ...

1 labor budget calculating the fixed labor budget instead

1. Labor budget: calculating the fixed labor budget. Instead of the benefits stated in Exhibit l.4e, assume that all benefits are 210/6 and all raises are 3.5% and calculate the fixed labor budget for January, February, ...

According to an article in the wall street journal during

According to an article in the Wall Street Journal, during the last quarter of 2008, the Walt Disney Company "lost money on a fuel hedge for the company cruise line." Why would Disney want to undertake a fuel hedge? How ...

1 what does the reliability coefficient of a measure

1. What does the reliability coefficient of a measure indicate if it is .60? .OO? 1.00? 2. What does a correlation coefficient tell us? Why are correlation coefficients useful when assessing reliability? 3. What are the ...

If a stock has both diversifiable risk and nondiversifiable

If a stock has both diversifiable risk and nondiversifiable risk, which, if any, of these risks are considered in the pricing of the asset? In the context of the CAPM, what is the term represented by E(RM) - Rf? Explain ...

1 in what way is the npv consistent with the principle of

1. In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive NPV project is accepted? If a negative NPV project is accepted? 2. Can you nam ...

What is the primary role of the bolts in a bolted joint why

What is the primary role of the bolts in a bolted joint? Why do many designers of safety related joints, and most codes, favor joints that could support four or more times the anticipated service loads? You have roughed ...

Explain the analogy relating irrigation flows to flows of

Explain the analogy relating irrigation flows to flows of funds in the financial system. What happens to a farmer when irrigation water dries up? What happened to businesses in the United States when the flow of funds dr ...

A debtor has filed a plan to reorganize his affairs of the

A debtor has filed a plan to reorganize his affairs of the Bankruptcy Code. The plan calls for payment of 10 cents on the dollar to all unsecured creditors over the next three years. The only secured creditor is Last Ban ...

If pawn shops charge high interest rates on loans why do

If pawn shops charge high interest rates on loans, why do people borrow money from them? Suppose Congress passes a law that puts a ceiling of 10% per year on the interest rate that pawn shops can charge on loans. Would t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen