Question
Calculate SRISK and LRMES for these 3 banks and provide a quick interpretation of these 3 metrics. Institution SRISK ($,M) LRMES (%) Beta MVE Liabilities
- Calculate SRISK and LRMES for these 3 banks and provide a quick interpretation of these 3 metrics.
Institution | SRISK ($,M) | LRMES (%) | Beta | MVE | Liabilities |
Citigroup | ? | ? | 1.03 | 151,421 | 2,066,038 |
Wells Fargo | ? | ? | 0.91 | 184,839 | 1,779,954 |
Prudential | ? | ? | 1.22 | 39,043 | 872,512 |
Assume d=0.4 (threshold of drop in general market value) and prudential capital requirement k=0.08.
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
