A bank calculates its VAR at 30 million. If the variance of some of its assets...
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,
|
Increase. |
|
|
Decrease. |
A bank calculates its VAR at 30 million. If it would like to reduce its VAR it can,
|
a. |
Seek out investments that have a positive covariance. |
|
b. |
Seek out investments that have a negative covariance. |
Homework Answers
1). If variance of some assets increases, then volatility is increasing, so VAR will increase.
2). Negative co-variance would mean that asset returns move in opposite directions, thus, reducing risk. So, to reduce VaR, seek out investments with negative co-variance.
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A bank calculates its VAR at 30 million. If the variance of some
of its assets...
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step by step, please
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If this balance sheet depicts the only bank in the economy, how
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a-$5 million
b-$10 million
c-$15 million
d-$60 million
e-$65 million
Given the balance sheet above and assuming a required reserve
ratio of 20%, which of the following accurately describes the
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a-it is failing to meet its reserve
requirement
b-it is just meeting its reserve requirement, but has no excess
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The balance sheet for the newly formed ACME Bank is shown below.
The reserves listed on the balance sheet are reserves on deposit at
the Federal Reserve. The cash is the vault cash held in
the bank.
1a)
1b) If the reserve requirement is 10% percent, how much in
excess reserves is the bank holding?_______
Suppose that Goldstar Bank is completely "loaned up." Now
suppose that a customer deposits an additional $40,000 into the
bank. Assume the reserve requirement is...
What was the total increase in assets between 2011 and 2012?
What was the hospital's 2012 net income (assume the hospital is
NFP and as such does not pay out dividends? Also assume that the
hospital had no charitable donations during 2012).
What kinds of debt and equity are used to fund the hospital's
increase in assets?
It's great that the hospital has positive net income and that
it's growing its asset base. What concerns do you have about the...
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