Institute of Actuaries of India INDICATIVE SOLUTIONS November 2012 Examinations
... The stylized scenarios are scenarios in which a simulated movement in one or more major interest rates, exchange rates, stock prices or commodity prices is considered. These scenarios can range from relatively moderate changes to quite extreme ones. Stylized scenarios have been used for a long time ...
... The stylized scenarios are scenarios in which a simulated movement in one or more major interest rates, exchange rates, stock prices or commodity prices is considered. These scenarios can range from relatively moderate changes to quite extreme ones. Stylized scenarios have been used for a long time ...
U.S. Annuity Market Dynamics and Regulatory Requirements
... 65-year-old female: 42% chance of living to 90 A couple, both aged 65, has a 60% of at least one living to 90; 30% chance of at least one living to 95 ...
... 65-year-old female: 42% chance of living to 90 A couple, both aged 65, has a 60% of at least one living to 90; 30% chance of at least one living to 95 ...
A Debt Risk-Warning Model for Local Government Financing Platforms
... early warning model by pattern recognition methods and collected 158 bonds of LGFPs as research samples. Through case studies, the model provides analytical tools of risk management and decision-making for financial institutions. These can be used to assess the credit risk of LGFPs. In addition, the ...
... early warning model by pattern recognition methods and collected 158 bonds of LGFPs as research samples. Through case studies, the model provides analytical tools of risk management and decision-making for financial institutions. These can be used to assess the credit risk of LGFPs. In addition, the ...
The Risk-Return Relationship in Asean-5 Stock Markets
... three stock markets. Using the set of 30 ASEAN Stars stocks, the risk premiums are negative in the year 2012 in the all markets excluding the Stock Exchange of Thailand where there is 0.4% per week risk premium. Consistent with the result using the top 100 stocks, the risk premium of the Malaysian e ...
... three stock markets. Using the set of 30 ASEAN Stars stocks, the risk premiums are negative in the year 2012 in the all markets excluding the Stock Exchange of Thailand where there is 0.4% per week risk premium. Consistent with the result using the top 100 stocks, the risk premium of the Malaysian e ...
Government bond yields and risk aversion
... • International factors such as general risk perception play a crucial role in explaining EA sovereign bond yield differentials. • Role played by domestic factors is smaller, but non-negligible. A deteriorating domestic outlook for fiscal deficits is associated with higher bond yields. • Significant ...
... • International factors such as general risk perception play a crucial role in explaining EA sovereign bond yield differentials. • Role played by domestic factors is smaller, but non-negligible. A deteriorating domestic outlook for fiscal deficits is associated with higher bond yields. • Significant ...
Investment vs. Saving Why investing?
... often used as if it were “investing” (for example, savings account that earns an interest rate), in personal finance we do differentiate them. ...
... often used as if it were “investing” (for example, savings account that earns an interest rate), in personal finance we do differentiate them. ...
the great risk/return inversion - who loses out?
... traces in detail how benchmarking pressures distort prices. A positive earnings shock for a security or sector causes prices to rise to a new and higher valuation level. Managers who were underweight to start with now find their mismatch has increased and need to make additional purchases to satisfy ...
... traces in detail how benchmarking pressures distort prices. A positive earnings shock for a security or sector causes prices to rise to a new and higher valuation level. Managers who were underweight to start with now find their mismatch has increased and need to make additional purchases to satisfy ...
Key Investor Information
... The subfund is in risk category 6 because the volatility of its returns is very high. The subfund invests in commodities and may therefore be subject to high fluctuations in value. Based on past experience, although the correlation between commodities and traditional asset classes is only slight or ...
... The subfund is in risk category 6 because the volatility of its returns is very high. The subfund invests in commodities and may therefore be subject to high fluctuations in value. Based on past experience, although the correlation between commodities and traditional asset classes is only slight or ...
Management Science Modeling of Risk in 21st Century Supply Chains
... – Capital asset pricing model • Evaluate investments in terms of risk & return relative to the market as a whole • The riskier a stock, the greater profit potential • Thus RISK IS OPPORTUNITY ...
... – Capital asset pricing model • Evaluate investments in terms of risk & return relative to the market as a whole • The riskier a stock, the greater profit potential • Thus RISK IS OPPORTUNITY ...
How does bank bench mark IT- IMPORTANT
... Even if the above does not happen, banks will have to shed assets to shrink their balance sheets, reduce the scale of operations and economic growth will suffer. Liquidity is a bigger concern than capital owing to the sheer size of the debt banks will need to meet liquidity regulatory obligations. ...
... Even if the above does not happen, banks will have to shed assets to shrink their balance sheets, reduce the scale of operations and economic growth will suffer. Liquidity is a bigger concern than capital owing to the sheer size of the debt banks will need to meet liquidity regulatory obligations. ...
Housing Finance in Emerging Markets: Policy and
... Securitization focuses attention on servicing functions of reporting, documentation, performance ...
... Securitization focuses attention on servicing functions of reporting, documentation, performance ...
Country Risk Updates – Q1 2016 Jan
... Low degree of uncertainty associated with expected returns. However, country-wide factors may result in higher volatility of returns at a future date. Enough uncertainty over expected returns to warrant close monitoring of country risk. Customers should actively manage their risk exposures. Signific ...
... Low degree of uncertainty associated with expected returns. However, country-wide factors may result in higher volatility of returns at a future date. Enough uncertainty over expected returns to warrant close monitoring of country risk. Customers should actively manage their risk exposures. Signific ...
Seeing the positive - The Business Times
... in both US dollar denominated bonds and local currency denominated bonds. Another theme is the growing impact of political risk and geopolitics in financial market volatility. So with a backdrop of low yields and rising volatility becoming the norm, we have a situation where investors’ returns will b ...
... in both US dollar denominated bonds and local currency denominated bonds. Another theme is the growing impact of political risk and geopolitics in financial market volatility. So with a backdrop of low yields and rising volatility becoming the norm, we have a situation where investors’ returns will b ...
Manage Cost of Risk and Control Price
... losses to identify trends in your performance. We also analyse losses to identify the following: ...
... losses to identify trends in your performance. We also analyse losses to identify the following: ...
Institute of Actuaries of India Subject ST5 – Finance and Investment A
... The liability in this case will change with the change in WPI WPI linked bond would be helpful to hedge the liabilities. So that the coupon and principal proceeds from the bond portfolio can be used to meet the obligation to make the payments. However, such a longer duration bond may not be availabl ...
... The liability in this case will change with the change in WPI WPI linked bond would be helpful to hedge the liabilities. So that the coupon and principal proceeds from the bond portfolio can be used to meet the obligation to make the payments. However, such a longer duration bond may not be availabl ...
paper
... higher values than the former. Likewise, when estimating risk values for nonfatal injuries, those derived by the CA method were higher than those derived by the CV method. There are several possible explanations for these results. First, the theoretical foundation differs between the elicitation met ...
... higher values than the former. Likewise, when estimating risk values for nonfatal injuries, those derived by the CA method were higher than those derived by the CV method. There are several possible explanations for these results. First, the theoretical foundation differs between the elicitation met ...
The Expected Utility Rule for Evaluating Gambles Suppose that a
... between the gambles by comparing their expected utilities: X is chosen over Y if, and only if, EU X > EU Y and Y is chosen over X if and only if EU Y > EU X with indifference between X and Y being defined by EU Y = EU X . The certainty equivalent of a gamble, X = ( pGX , pBX , cGX , cBX ) , is defin ...
... between the gambles by comparing their expected utilities: X is chosen over Y if, and only if, EU X > EU Y and Y is chosen over X if and only if EU Y > EU X with indifference between X and Y being defined by EU Y = EU X . The certainty equivalent of a gamble, X = ( pGX , pBX , cGX , cBX ) , is defin ...
C01_Reilly1ce
... beginning market values for each investment, which is often referred to as dollar-weighted or value-weighted mean rate of return. ...
... beginning market values for each investment, which is often referred to as dollar-weighted or value-weighted mean rate of return. ...
Expected Return Standard Deviation
... diversification. Investors all invest for the same period of time. There is a risk _ _ _ _ investment, and investors can borrow and lend any amount at the risk-free rate. Capital markets are completely competitive ...
... diversification. Investors all invest for the same period of time. There is a risk _ _ _ _ investment, and investors can borrow and lend any amount at the risk-free rate. Capital markets are completely competitive ...
Cost of Capital
... • If we are using CAPM to arrive at a cost of capital to evaluate a long term project, we need for the risk free rate a short term real rate plus expected long term inflation • rf = r30 - risk premium • risk premium is probably 1-2% ...
... • If we are using CAPM to arrive at a cost of capital to evaluate a long term project, we need for the risk free rate a short term real rate plus expected long term inflation • rf = r30 - risk premium • risk premium is probably 1-2% ...
Slides from Lloyd Morgan`s Presentation
... incidence increase in brain tumors and there is no such increase” – It is true there is no increase incidence of brain tumor YET. But the average latency time for brain tumors is ...
... incidence increase in brain tumors and there is no such increase” – It is true there is no increase incidence of brain tumor YET. But the average latency time for brain tumors is ...
Download Syllabus
... Third part – Funding Liquidity Risk Definitions of funding liquidity risk for both the banking book and the trading book. The relationship between funding liquidity risk and trading liquidity risk. Funding illiquidity as one of the two fundamental causes of financial collapse. Measuring and managi ...
... Third part – Funding Liquidity Risk Definitions of funding liquidity risk for both the banking book and the trading book. The relationship between funding liquidity risk and trading liquidity risk. Funding illiquidity as one of the two fundamental causes of financial collapse. Measuring and managi ...
Chapter 2
... • for debt securities, risk associated with changes in interest rates; consists of price risk and reinvestment rate risk Price Risk • a change in market interest rates produces an opposite change in the value of investments Reinvestment Rate Risk • risk as to what interest rate will be when income a ...
... • for debt securities, risk associated with changes in interest rates; consists of price risk and reinvestment rate risk Price Risk • a change in market interest rates produces an opposite change in the value of investments Reinvestment Rate Risk • risk as to what interest rate will be when income a ...
Risk
Risk is potential of losing something of value. Values (such as physical health, social status, emotional well being or financial wealth) can be gained or lost when taking risk resulting from a given action, activity and/or inaction, foreseen or unforeseen. Risk can also be defined as the intentional interaction with uncertainty. Uncertainty is a potential, unpredictable, unmeasurable and uncontrollable outcome, risk is a consequence of action taken in spite of uncertaintyRisk perception is the subjective judgment people make about the severity and/or probability of a risk, and may vary person to person. Any human endeavor carries some risk, but some are much riskier than others.