Linear Discriminant Analysis
In Linear Discriminant Analysis, variables are selected based on their estimated contribution to the likelihood of de...
Altman Z-Score Model
Altman's Z-Score Model is a numerical calculation that predicts whether a company will go bankrupt in the next two ye...
Extreme Value Theory
Extreme value theory (EVT) is a branch of applied statistics developed to address problems associated with extreme ou...
Markowitz Efficient Frontier
The Markowitz efficient set is a mathematical concept that depicts the portfolios that produce the highest predicted ...
Risk Committee
At the corporate level, the risk committee is there to assist the board with strategic risk management at an organiza...
Translation Risk
Transaction Risk refer to the risk when the cash flow of one currency must be exchanged for a future date to settle a...
Capital Conservation Buffer
The capital conservation buffer (CCB) is meant to protect banks in times of financial distress. It is in keeping with...
Transaction Risk
Transaction Risk refer to the risk when the cash flow of one currency must be exchanged for another at a future date ...
What is Stress Testing?
Stress testing is a type of scenario analysis that looks at a financial outcome based on a specific "stress" placed o...
Bull and Bear Spread
Bull and Bear spread are two common hedging strategies.