risk analysis and risk management

... specify the risk premium for an asset as: Risk Premium = f (Business Risk, Financial Risk, Liquidity Risk, Exchange Rate Risk, Country Risk) or Risk Premium = f (Systematic Market Risk) These ... including business risk, financial risk, liquidity risk, exchange rate risk, and country risk, or it can be a function of systematic market risk (beta) Measures and Sources of Risk In this chapter, ... the market measure of risk (systematic risk) and accounting variables used to measure the fundamental risk factors, such as business risk, financial risk, and liquidity risk The authors of these...

Ngày tải lên: 08/05/2014, 09:55

... investment analysis ………………………………… 32 2.1 Investment income and risk ……………………………………………….32 2.1.1 Return on investment and expected rate of return………………… 32 2.1.2 Investment risk Variance and standard ... investment analysis and portfolio formation, stocks and bonds analysis and valuation for investment decision making, options pricing and using as investments, asset allocation, portfolio rebalancing, and ... The target audience is: entrepreneurs, finance and management specialists from Latvia, Lithuania and Bulgaria Investment Analysis and Portfolio Management The course assumes little prior applied...

Ngày tải lên: 14/08/2014, 22:20

... Bloomberg 31 Investment Analysis and Portfolio Management Quantitative methods of investment analysis Mini-contents 2.1 Investment income and risk 2.1.1 Return on investment and expected rate of ... principles, such as the 26 Investment Analysis and Portfolio Management present value, the future value, the cost of capital) And very often investment and financing analysis for decision making use ... make such analysis Most frequently two forms of analysis are used: technical analysis and fundamental analysis Technical analysis involves the analysis of market prices in an attempt to predict...

Ngày tải lên: 14/08/2014, 22:20

... Sample standard deviation (δr) consequently can be calculated as the square δ root of the sample variance: δr = √ δ²r (2.8) 35 Investment Analysis and Portfolio Management Variance and the standard ... deviation are similar measures of risk and can be used for the same purposes in investment analysis; however, standard deviation in practice is used more often Variance and standard deviation are used ... return and risk of the particular asset But how does one asset having some specific trade-off between return and risk influence the other one with the different characteristics of return and risk...

Ngày tải lên: 14/08/2014, 22:20

... Systematic risk Unsystematic risk Systematic risk is that associated with the market (purchasing power risk, interest rate risk, liquidity risk, etc.) 56 Investment Analysis and Portfolio Management ... meaning Risk of security is twice higher than market risk Security’s risk is equal to market risk Security’s risk twice lower than market risk Security’s risk are not influenced by market risk Security’s ... the market and market risk (systematic risk) : 57 Investment Analysis and Portfolio Management E(r j) = Rf + β(j) * ( E(rM) - Rf ), here: (3.4) E(r j) - expected return on stock j; Rf - risk free...

Ngày tải lên: 14/08/2014, 22:20

... • Risk aversion • efficiency • Risk free rate of return • Total risk • Risk of the portfolio • Unsystematic (specific) risk • Security Market Line (SML) • Weak form of market • Systematic risk ... Portfolio Construction, Management and Protection 70 Investment Analysis and Portfolio Management Investment in Stocks Mini-contents 4.1 Stock as specific investment 4.2 Stock analysis for investment ... investors are first involved in making the analysis and forecast of the economy, then for industries, and finally for 72 Investment Analysis and Portfolio Management companies The industry forecasts...

Ngày tải lên: 14/08/2014, 22:20

... timi9ng strategies: • Technical analysis; • Stock valuation analysis • Analysis of economic forecasting 85 Investment Analysis and Portfolio Management Technical analysis is based on the diagrams ... Investment Analysis and Portfolio Management Investment in bonds Mini-contents 5.1.Identification and classification of bonds 5.2.Bond analysis: structure and contents 5.2.1 Quantitative analysis ... industry analysis suggests the examining of four key areas: demand, pricing, costs and the influence of the whole economics and financial markets The base for the company analysis is fundamental analysis...

Ngày tải lên: 14/08/2014, 22:20

... Investment Analysis and Portfolio Management performing of fundamental analysis for common stock, bond analysis (or credit analysis) uses financial ratios However the analysis of bonds ... financial sector, bond quality, supply and demand for credit); The investor must understand which factors and conditions have the influence on the yield and the prices of the bonds The main factors ... supply and the demand for the credit; The interest rate o the price of borrowing money in the market depend on the supply and demand in the credit market; When the economy is growing the demand...

Ngày tải lên: 14/08/2014, 22:20

... identifying over valuate bonds and under valuated bonds 13 The passive bond management strategies include two broad classes of strategies: “buy and hold” and indexing “Buy and hold” is strategy for ... investment risk 6.4 Mental accounting and investing 6.5 Emotions and investing Summary Key terms Questions and problems References and further readings The finance and investment decisions for some ... above -average return 120 Investment Analysis and Portfolio Management Investing is a difficult process It involves gathering information, information analysis and decision making based on that...

Ngày tải lên: 14/08/2014, 22:20

... Investment Analysis and Portfolio Management Klos, Alexander, Elke Weber, Martin Webre (2005), Investment decisions and Time Horizon: Risk Perception and Risk Behavior in Repeated Gambles.// Management ... 7.2 (Buy call) and 7.3 (Buy put); profit and loss from the strategy “Write a put and a call” can be derived by adding the profits and the losses shown in Fig 7.2 (Write call) and 7.3 (Write put) ... complex formulas of this model (see Annex 2) to identify and to trade over- and under valuated options 140 Investment Analysis and Portfolio Management 7.4 Portfolio protection with options Hedging...

Ngày tải lên: 14/08/2014, 22:20

... passively and another part actively Some active and passive management strategies commonly used for stocks and bonds portfolios were discussed in Chapters 4.4 and 5.4 149 Investment Analysis and Portfolio ... Questions and problems References and further readings 8.1 Active versus passive portfolio management types of investment portfolio management: • Active portfolio management • Passive portfolio management ... Analysis and Portfolio Management Portfolio management and evaluation Mini content 8.1 Active versus passive portfolio management 8.2 Strategic versus tactical asset allocation 8.3 Monitoring and...

Ngày tải lên: 14/08/2014, 22:20

... depends on the degree of risk aversion The chosen portfolio mixes the risk- free asset and portfolio M of risky assets Separation Theorem  The optimal combination of risky assets is determined ... trade-off between risk measured by β iM and return ri In equilibrium all assets and portfolios must have risk- return combinations that lie on this line rp rf β iM Market Model and CAPM Market model ...   The risk on the market portfolio is σM The covariance of the risk- free asset is zero The covariance of the market with the market is σ M2 Security Market Line  Can mix M and the riskfree...

Ngày tải lên: 04/10/2015, 19:51

... time and resources Quality Decisions and Risk Management The quality of an organization’s risk management is the degree to which we understand the uncertainties (risks, implications) of future events ... interpretation of the available information and their unique sense of risk and return Risk in the Decision-Making Process Analyzing risk requires an understanding of the types of uncertainty that ... without a full understanding of the uncertainties or risks involved With poor decisions, risks are understated and returns exaggerated High quality decisions imply a complete understanding of the uncertainties...

Ngày tải lên: 10/12/2013, 17:15

... fields of risk analysis and risk management, I asked my colleagues to help me write the chapters for which they were recognized experts in their particular practice of risk analysis and risk management ... Epidemiology and Cancer Risk Assessment Herman J Gibb Chapter I.3 Uncertainty and Variability of Risk Analysis Richard Wilson and Alexander Shlyakhter Chapter I.4 Monte Carlo Risk Analysis Modeling ... known as risk analysis and risk management in the contemporary western world Most chapters also provide a summary, questions and answers to be used as tools in teaching courses in risk analysis...

Ngày tải lên: 11/08/2014, 12:21

... occupational, and residential * Adapted in part from Driver, J and C Wilkinson 1995 Pesticide and human health: Science, regulation, and public perception, In: Risk Assessment and Management Handbook ... requirements, test protocols, standards for interpretation, and methods of risk assessment and risk management (U.S EPA 1994a) Major efforts are underway with Canada and Mexico under the North American ... software, such as DietRisk (Driver and Milask 1995) and the U.S EPA’s Dietary Risk Evaluation System (DRES), which is currently being updated and revised, the 1977–1978 and 1987–1988 United States...

Ngày tải lên: 11/08/2014, 12:21

... difference between risk analysis and risk assessment? What is the difference between risk analysis and risk management? What is the difference between comparative and other forms of risk analysis? Why ... and the Insurance of Catastrophic Risks” Journal of Risk and Insurance (Part I) 40:231–243 Stone, John (1973b) “A Theory of Capacity and the Insurance of Catastrophic Risks” Journal of Risk and ... still in danger 2.3 Science of Risk Analysis It appears that risk and risk analysis have been terms redefined by many groups Risk is defined as “hazard + outrage” and not the usually accepted definition...

Ngày tải lên: 11/08/2014, 12:21

... Eds., Hazards and the Communication of Risk Gower, England, 1990a, 70 Handmer, J and Penning-Rowsell, E., Eds., Hazards and the Communication of Risk Gower, England, 1990b, 72 Handmer, J and Penning-Rowsell, ... Green, C Perceived risk: past, present and future conditional, in Hazards and the Communication of Risk Handmer, J and Penning-Rowsell, E., Eds., Gower, England, 1990, Chap Handmer, J and Penning-Rowsell, ... Hazards and the Communication of Risk Gower, England, 1990c, 73 Handmer, J and Penning-Rowsell, E., Eds., Hazards and the Communication of Risk Gower, England, 1990d, 313 Kreimer, A and Munasinghe,...

Ngày tải lên: 11/08/2014, 12:21

... managers and environmental interests Management Framework - Introd uced Marine Pests Workshop, November 2001… Elements for a Draft Risk Management Framework Risk Assessment and Cost Benefit Analysis ... limited  Vector management is limited and unbalanced Management Framework - Introd uced Marine Pests Priorities and hazards for Economies  Variable levels of activity and management capability ... have been identified in APEC Management Framework - Introd uced Marine Pests Considerations for a risk management framework  Risk management - “ culture, processes and structures that are directed...

Ngày tải lên: 28/10/2013, 11:15

... appraisal and risk management for the public sector BASIC NEEDS ANALYSIS SOCIAL ANALYSIS ECONOMIC ANALYSIS FINANCIAL ANALYSIS MARKET ANALYSIS TECHNICAL ANALYSIS RESOURCES ANALYSIS ECONOMIC ANALYSIS ... appraisal and risk management for the public sector OUTPUT OF MODULE – Technology and life of project – Quantities of inputs by type needed – For investment and operation – Labour required by type and ... Expenditures Project appraisal and risk management for the public sector II STAGES IN PROJECT APPRAISAL AND APPROVAL Why should a project evaluation be done in stages? a Idea and project definition b...

Ngày tải lên: 20/12/2013, 18:15

... credit risk managers Moreover, liquidity risk and its potential interaction with other risks should be included in the risks addressed by risk management committees and/ or independent risk management ... managing and supervising liquidity risk These principles are as follows: Principles for Sound Liquidity Risk Management and Supervision Principles for the management and supervision of liquidity risk ... Principles for the management and supervision of liquidity risk .3 Fundamental principle for the management and supervision of liquidity risk Governance of liquidity risk management ...

Ngày tải lên: 21/02/2014, 11:20