Q1: What are the main goals of financial regulation? [5 POINTS]

Q2: Assume that a portfolio consists of two assets. Asset A has an allocation of 80% and a standard deviation of 16% while asset B has an allocation of 20% and a standard deviation of 25% with a correlation coefficient between asset A and asset B of 0.6. Please calculate the standard deviation of the portfolio. [10 POINTS]

Q3: Please list key material risks of a standard bank? (Both financial and non-financial risks) Does the ranking (or importance) of these risks change for each bank? [10 POINTS]

Q4: What are the key differences between Credit and Market risks? [5 POINTS]

Q5: Please calculate the VaR of the position using the information provided below. Assume you have a well-diversified $500,000 portfolio of stocks with a daily standard deviation of 2%. If we assume 95% confidence and normally distribution, what is the daily VaR and 5-days VaR? [10 POINTS]

Q6: What is operational risk and what are the categories of operational risks based on Basel Committee? [5 POINTS]

Q7: During model validation process, what are the model ratings? If a model is rated “Needs moderate enhancements”, can the model owner use the model? [10 POINTS]

Q8: What is “change log” and why it is important? [5 POINTS]

Q9: What is Third-party Risk Management? [5 POINTS]

Q10: On the second day of the course, the documentary we have watched, “Trillion Dollar Bet,” was describing the development of the Black-Scholes (or Black-Scholes-Merton) model, which was a key development in theoretical finance and earned Nobel prizes for two of its developers. The following is a list of questions regarding the material covered in the video. Please answer them with short responses. [15 POINTS]

1.What was the discovery that revolutionized finance? What was the key insight about the relationship between the risk of a stock and the risk of an option that allowed for this discovery?

2.What is traded on the Chicago Mercantile Exchange?

3.What is an option?

4.What feature of options made Myron Scholes excited these investment instruments?

5.What is dynamic hedging, what does it involve, and why is it useful? (Note – this is probably the most difficult question on this list.)

6.What was the practical problem with Black and Scholes’ equations?

7.Did this model require traders to trade more frequently or less frequently in order to control or manage their investment risks? What effect did this have on the size of the market for “derivatives”?

Q11: What is effective challenge and how does it depend on incentives, competence, and influence? [10 POINTS]

Q12: What is the main difference between Resolution Scenario and Recovery Scenarios? [10 POINTS]

MBA 527 – Risk Management in Banking – Take home final examination

This project is based on the topic of risk management. In comprises of total 12 questions. Each of the questions is to be answered most appropriately. Question 10 in based on the case study. There is a list of seven questions that are needed to be answered. Prepare brief and most accurate answers to the questions.

The risk management entails to the assessment as well as the identification of risks which are being followed by the application of economic resources and coordination for reducing and minimising its impact. The MBA 527-Risk Management in banking assignment help experts that our company employs are efficient enough for solving even the most critical of the projects in no time. Our team enables the learners to finish their subject project and homework before the deadline without actually comprising on the quality. The academic writing service offered by our company is extremely useful to the students who are having a tough time managing their homework and studies. We have a plethora of enthusiastic academic writers with a vast knowledge pool and a wide variety of skills. The team can take on any subject task that you send irrespective of the level of education and university you are studying it. Our work ensures that you gain thorough knowledge and understanding of the subject through the academic help offered by us. The customers are provided with the original unique papers pertaining to their course. Connect to our team today for the best quality subject papers.

Related posts: