Assessing the risk, return and efficiency of banks’ loans portfolios ∗ Javier Menc´ ıa Bank of Spain June 2008 Preliminary and Incomplete Abstract This paper develops a dynamic model to assess the risk and profitability of loans portfolios. I obtain their risk premia and derive the risk-neutral measure for an exponentially affine stochastic discount factor. I employ mean-variance analysis with a VaR constraint to assess efficiency. Then I compare Spanish institutions in an empirical application, where
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Domestic terrorism has been a part of United States (U.S.) history since its independence. Domestic terrorism can be defined in the U.S. as acts dangerous to human life or the infrastructure and committed by a U.S. citizen. New York City is no stranger to acts of terrorism whether it is domestic or international. New York City is considered the financial center of the world and is home to numerous critical infrastructures that can be vulnerable to acts of domestic terrorism. One of the major critical
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resources, households seek to neither splurge nor hoard, but | |rather to achieve a smooth living standard over time. Consumption smoothing not only underlies the economics approach to spending and | |saving, it is central to the field’s analysis of insurance decisions and portfolio choice. | |Smoothing a household's living standard requires using a sophisticated mathematical technique called dynamic programming to solve a number | |of difficult
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Discuss some the factors which influence our thinking, judgement and decision-making Our everyday lives are filled with many choices and decisions which will impact on our lives both in the short and long-term. Our perception of the impact of these decisions on our own lives and those around us will affect how much time and effort is given to arriving at these decisions. There are several factors which impact on thinking, judgement and decision-making and it is important to note that often these
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Aero Business Contingency Plan The risk register that was created for Aero identified eight risks that could affect the completion of Aero’s IT security software product that two of its developers are working on. The register identifies these risks and notes the responses that Aero should handle in order to lower the damage done to the company’s finances, relationships and employee wellbeing. This product and its release to US government agencies as well as international businesses is essential
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mitigate different risks in a global supply chain? Risks in global supply chain Risk * Exposure to chance of injury or loss * Hazard or dangerous chance * Chance of loss * Degree of probability of such a loss Global supply chains can increase efficiency, but they can also increase risk. For example the Japanese earthquake and tsunami, the floods in Thailand and the ash clouds caused by the Icelandic volcano—have demonstrated how far the consequences of such risks can extend. The
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............. p. 4 Step 3: Nonfinancial Matters when Accepting a Client....................................................... p. 5 Step 4: Recommendation whether to Accept or Decline Ocean as an Audit Client.. .......... p. 6 Step 5: Important Risk Areas and Factors ........................................................................... p. 7 Step 1: Client Acceptance Decision Process Barnes and Fisher needs to decide whether it will accept the auditing request of Ocean Manufacturing Inc
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considered by investigators. This suggests that the initial purpose of the investigation was not concerned with ethical issues or issues of responsibility. As the investigation proceeded information appeared that suggested that NASA had been aware of the risk of explosion under the environmental conditions that existed for the Challenger launch for several months prior to the launch. Also, the disagreement of the technical experts to the launch just prior to the decision to launch became known to the investigators
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that the future is uncertain, and they should not hurry to make a decision, otherwise, it may leading them to an unexpected negative consequences, therefore, they do delay a decision because they have enough time to evaluate the decision, as well as analysis the information that they had collected. Thus, the probability of regret can be minimize, and avoid sunk costs as well. Besides that, Fear considered as one of the most important reason for people do delay a decision when they know it is the right
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clear choice of one option over others. Decision making is a fact of life personally and in business. We make dozens of decisions each day. Some decisions are simple, while others are complex. Some are made for us while others require a great deal of analysis and thought. From what to wear to work to what computer system to choose to how to reward top performers to what movie to see, we use a variety of complex thought processes to make decisions from an array of options. Our ability to make decisions
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