It would not be exaggerating to argue that financial risk analysis is one of the most important and most difficult components of project appraisal. Such analysis is especially important because the financial viability of a project may be critical for its long-term sustainability and survivability. Its particular difficulty is due to the inherent challenge of pricing risk with market
(BQ) Part 1 book "Mathematics and statistics for financial risk management" has contents: Some basic math, probabilities, basic statistics, distributions, multivariate distributions and copulas, bayesian analysis, hypothesis testing and confidence intervals, matrix algebra.
Lecture Financial risks management - Topic 1: Risk management introduction. In this chapter, students will be able to understand the process of financial risk management (IMM) at financial and non-financial firms.
Lecture Financial risks management - Topic 2: Measuring portfolio risk and return. In this chapter, students will be able to understand measure the risks of a stock investment; measure the risks of a portfolio of stocks, bills, and bonds.
Topic 3 - Equity risk mitigation. The main contents of the chapter consist of the following: What do financial risk managers do? Forward contracts, payoff on a forward contract, reading price quotes, call options,...
Mathematical finance and financial engineering have been rapidly expanding fields of science over the past three decades. The main reason behind this phenomenon has been the success of sophisticated quantitative methodologies in helping professionals to manage financial risks. The newly developed credit derivatives industry has grown around the need to handle credit risk, which is one of the fundamental factors of financial risk. In recent years, we have witnessed a tremendous acceleration in research efforts aimed at better apprehending, modeling and hedging of this kind of risk
Financial Risk Management FRM Part 1 Foundation of Risk Management Lecture Classifications of Risk defining risk, identifying the classifications of risks and explaining the role played by risk in value creation.
Bài giảng Management theory and practice Financial: Chapter 12 với các nội dung cơ bản như: Overview and preview of capital
structure effects; Business versus financial risk; The impact of debt on returns; Capital structure theory, evidence, and implications for managers;... Mời các bạn cùng tìm hiểu và tham khảo nội dung thông tin tài liệu.
Topic 4 - Modeling portfolio risk, return, and VaR. In this chapter, the learning objectives are: Compute portfolio return, risk, var using excel and matrix operations; compute optimal portfolios; computing VaRs and Confidence Intervals using @Risk.
Topic 6 - Currency forwards, futures, and options. In this chapter students understand and can recall: Payoffs and profits of currency forwards, futures, and options; forecasting spot and forward exchange rates with PPP, IRP, and UFR; how financial managers use forwards, futures, and options to hedge fx risk.
Topic 7 - Measuring and managing translation and transaction exposure. In this chapter, students will be able to understand: type of foreign exchange exposure; translation methods and FASB-52; methods for managing translation exposure; the definitions, implementation, and use of EaR to measure exchange rate risk.
Topic 8 - Multinat corp monte carlo simulations using excel and @risk. In this chapter, students will be able to understand: Apply Interest Rate Parity (IRP) and Unbiased Forward Rate (UFR) to forecast exchange rates; use Bloomberg forex quotes, forwards, volatilities and interest rates;...
In this chapter students understand and can recall: why changes in real exchange rates matter, how to measure competitive exposure, how to manage competitive exposure, How to manage country risk, real exchange rate appreciation, competitive exposure and loss due to exchange rate changes.
Topic 10 - Hedging commodity risk and CaR. In this chapter, students will be able to understand: Identify risks that affects the viability of your firm, measure exposure to identified risks, mitigate risks.
Topic 11 - Monte carlo simulations using excel and @risk: Hoffman mines. The main contents of the chapter consist of the following: Financial simulation process, hoffman gold mine financial statement simulation, distributions and correlations,.....
Topic 12 - Measuring and managing interest rate risk with financial forwards, futures and swaps. In this chapter, students can understand and can recall how DV01, Duration, Convexity, VaR, and Stress Tests are used to measure interest rate risk; how interest rate forwards, futures, and swaps are used to manage interest rate risk.
Topic 13 - Monte carlo simulations using excel and @risk: Retirement simulation. The main contents of the chapter consist of the following: Financial simulation process, retirement simulation, geometric brownian motion asset return model (random walk),...