Question
QUESTION THREE (a) Outline the four steps involved in a risk management process. (5 marks) (b) Briefly explain three risk exposures that an analyst should
QUESTION THREE
(a) Outline the four steps involved in a risk management process. (5 marks)
(b) Briefly explain three risk exposures that an analyst should report as part of an enterprise risk management system. (5 marks)
(c) Define market risk and what are the economic parameters considered when calculating market risk. (5 marks)
(d) Explain the concept of beta within the framework of the Capital Asset Pricing Model (CAPM). Discuss the relevance of the covariance between assets returns for an investor wishing to diversify the risk of a portfolio. (10 Marks)
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
