Question 2 Illustrate the FIVE (5) primary methods of managing credit risk for derivatives dealers. (25 marks) Question 3 You are given the following information of two assets: Asset Value of investment Expected return Standard deviation A RM30 million 15% 10% Correlation coefficient between returns on asset A and B is 0.3. Assume 252-days trading a year. (a) You have been asked to compute: (i) portfolio expected return (ii) portfolio standard deviation (iii) one-day and ten-day value at Risk (VaR) B RM20 million 12% 8% (b) Interpret the result of part (a) above. (6 marks) (6 marks) (10 marks)