What is Risk Control Self Assessment?
A risk control self-assessment (RCSA) requires the documentation of risks and provides a rating system and control id...
Option-Adjusted Spread
There are different interest rates used for different transactions in the financial market. One popular rate is optio...
Loss Frequency and Loss Severity
The frequency of claims is the number of claims an insurer expects to occur over a period of time, while the severity...
External Credit Ratings
A credit rating is a measurement of a person or business' ability to repay a financial obligation based on income & p...
Clean and Dirty Price
Coupon bonds have a clean price before any interest is paid.
Fama & French Model
The Fama and French is asset pricing model that builds on the capital asset pricing model by adding size & risk eleme...
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 ...