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Ho Lee Model
The Ho-Lee model improves upon the drift to incorporate time-dependency which means that the drift in time 1 will be ...
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Basic Indicator Approach
The basic indicator approach, is a set of operational risk monitoring techniques institutions under Basel II capital ...
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Knightian Uncertainty
One of the critical aspects of Risk Management is to identify risk. Part of the risk identification process is to fil...
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Value at Risk (VaR)
Given a particular likelihood of occurrence, the value at risk (VaR) determines an estimated loss amount at a given c...
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Realised Returns
Using the initial investment value and its final value, we can calculate the bond's realised return.This calculation ...
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Covariance Stationary
The relationships between its current and previous values stay constant. A time series that is covariance stationary ...
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Jensen’s Alpha
Jensen's Alpha is a risk-adjusted performance metric representing the average return on a portfolio or investment abo...
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Sox Regulation with Example
The Sarbanes-Oxley Act of 2002 is a United States law designed to protect investors from corporate accounting fraud.
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Quantile Function
The quantile function helps you figure out whether values in a distribution are above or below a specific threshold i...
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Black-Scholes-Merton Model
Black-Scholes was the first widely used option pricing model, commonly known as Black-Scholes-Merton. Assumption bein...