Risk

Certificates and their specific financial risk profiles Contents: Introduction PART 1: Warrant and Certificates A. What is a Warrant? - Definition - Maturity and life span B. Types of certificates - Certificates of indexation - Certificates turbo - Certificates of return C. Risk of warrants and certificates PART 2: specific financial risk profiles of warrant A. Valuation of Warrant B. Risk profiles of “Call warrant”? C. Risk profiles of “Put Warrant”? Conclusion

Capital One ? At Capital One, CRM is present in all the company’s activities and services. The goal is to develop valued relationships with the customers and handle the risk, understanding intimately the consumer. Thanks to that, the company is able to propose customized products which ideally correspond to needs and to the customer’s risk profile. The company uses IBS to implement her CRM: ISB permits to establish large quantities of data about its customers, to meet the goal mentioned above. Information

economist decides to change the lowest possible return in her assumptions from -30% to -20%. All other assumptions remain the same. By what amount does this change the market risk premium assumed by the economist? The risk-free rate stays as before, but the expected market return changes by 0.1*(-20-(-30))=1%. So the market risk premium increases by 1%. A. B. C. D. E. F. -10% -6% -1% 1% 6% 10% Sample exam #1 QUESTION 7 Look at the graph below. Portfolios A, B and C contain only two assets:

fund managers are: - JP Morgan Chase - Bridgewater Associates - Paulson & Co. - Brevan Howard - Soros Fund Management c. What is the aim of Hedge Funds? The primary aim of a Hedge Fund is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions. To hedge means in English: to lower. Hedge funds seek to hedge some of the risks inherent in their investments by using a variety of methods. II

Here are the articles used for the synthesis : -The risk that nobody wants, American law makers are at odds over terrorist insurance, on November the 15th of 2001, from The Economist, author unknown -Terrorism insurance, Is a federal backstop for terrorist insurance necessary?, on September the 5th of 2002, from The Economist, author unknown -Insurance, A World Trade Centre insurance payout depends on legal niceties, on May the 16th of 2002, from The Economist, author unknown -9/11

and manager every risk associated with the project and to ensure that all the risks are reduced or eliminate as far as possible. Of course, this can be a very time-consuming process as every detail concerning risks of the project needs to be disclosed and this process itself can generate extra costs. In project finance, there are many different types of risks in all phases of the project, such as the completion risk, commercial risk, political and regulatory risk, technical risk, force majeure and

Sous l’assistance de: Mme RHATAY [pic] Introduction Chapitre I: Notion d’ assurance * Section 1: Définition * Section 2: Les risques couverts * Section 3: Le contrat d’assurance Chapitre II: L’audit des assurances et le “risk management” * Section 1: Définitions et missions * Section 2: Déontologie Chapitre III: Le déroulement de l’audit des assurances * Section 1: Le but d’un audit des assurances * Section 2: Les étapes d’un audit des assurances

against stroke' A new The cigarette cancels out the protective effect of alcohol The findings are being presented at a meeting of the American Academy of Neurology in Toronto. A new research suggests sensible drinking can substantially reduce your risk of a stroke, but only if you don't smoke a cigarette at the same time, A study of over 20,000 people in the UK found non-smokers who drank moderate amounts were nearly 40% less likely to have a stroke than non-drinkers. But once cigarettes were

Solutions for E nd-of-Chapter Q uestions and Problems: C hapter O ne 1. What are five risks common to financial institutions? Default or credit risk of assets, interest rate risk caused by maturity mismatches between assets and liabilities, liability withdrawal or liquidity risk, underwriting risk, and operating cost risks. 2. Explain how economic transactions between household savers of funds and corporate users of funds would occur in a world without financial intermediaries. In a world without

Global trade also creates excessive waste and pollution. Risk Management Natural Disasters and Corporate Risk Management Natural Disasters usually bring unexpected and big losses, because it can not be predicted, prevented, or mitigated. Natural disasters are called pure risk or hazard risk in insurance. Hazard risk is externally driven factors. Such as hurricanes, earthquake, tornadoes, flood, fire, lightning etc. Main goal for corporate risk management is to lessen losses and achieve and sustain