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A2a. What is Market risk and explain its four key sub-types. From the below list of investments, 1) classify the assets into sub-types of market

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A2a. What is Market risk and explain its four key sub-types. From the below list of investments, 1) classify the assets into sub-types of market risk, 2) compute Basel 2 compliant capital charge and risk-weighted assets assuming minimum capital adequacy requirement of 8%. All figures are in INR. \begin{tabular}{|l|c|c|} \hline Commodities & Longposition & Shortposition \\ \hline Oil & 22,000 & \\ \hline Aluminum & & 12,000 \\ \hline Gold & 24,000 & \\ \hline (ClLO 2, 3 \& 4) & & \\ \hline \end{tabular}

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