Thank you

The inputs for Value of Risk Calculations include all of the following except,

Question 20 options:

	a. he variance of each asset and liability.
	b. The covariance of assets and liabilities.
	c. The default rate of each asset.
	d. The portion of each asset and liability of the total.

A bank calculates its VAR at 30 million. If the variance of some of its assets increases while all others remain the same the VAR will,

Question 21 options:

	Increase.
	Decrease.

A bank calculates its VAR at 30 million. If it would like to reduce its VAR it can,

Question 22 options:

	a. Seek out investments that have a positive covariance.
	b. Seek out investments that have a negative covariance.