Rsk4804 Study guides, Class notes & Summaries

Dear Student, The following solutions are for Assignment 01 only. Solutions for Assignment 02 will be released shortly after the due date for Assignment 02 as Tutorial Letter 201 incorporating examination information. We hope you find this information value adding. Best wishes. Dr. J. Chisasa Senior Lecturer Question 1 Explain Probability of default and briefly discuss its uses. (10) Suggested solution It is a statistical percentage probability of a borrower defaulting√ and it is dir...

Expected Loss EL = PD x EAD x LGD Portfolio return (assuming a portfolio with two assets) E(Rp) = W1(R1) + W2(R2) Portfolio standard deviation (assuming a portfolio with two assets) σp= √x2A σ2A + x2Bσ2 + 2xAxBCovA,B Covariance = ρ σ1 σ2 Correlation (ρ) = covariance1,2 / σ1 σ2 Altman Z-score Z =1.2 X1 + 1.4 X2 + 3.3 X3 + 0.6 X4 + 0.1 X5 Financial Ratios Key Ratios Profitability Gross margin = gross profit net sales × 100

Department of Finance, Risk Management and Banking

RSK4804 FORMULAE Expected Loss EL = PD x EAD x LGD Portfolio return (assuming a portfolio with two assets) E(Rp) = W1(R1) + W2(R2) Portfolio standard deviation (assuming a portfolio with two assets) σp= √x2A σ2A + x2Bσ2 + 2xAxBCovA,B Covariance = ρ σ1 σ2 Correlation (ρ) = covariance1,2 / σ1 σ2 Altman Z-score Z =1.2 X1 + 1

Department of Finance, Risk Management and Banking

RSK4804 EXAM PACK 2024 RSK pretest grade A+ A - Asthma -ANS- For which of the following conditions would a patient receive an inhaler? A. asthma B. diabetes C. hypertension D. gout B - furosemide -ANS- A patient presents a prescription for Lasix 40 mg, which has been authorized for generic substitution. Which of the following medications may be substituted for Lasix 40 mg? A. metoprolol B. furosemide C. alprazolam D. diltiazem D - PO -ANS- Which of the following is NOT ...

Assignment solutions for RSK4804, all answers are in place

INTRODUCTION The purpose of this tutorial letter is to provide you with suggested answers to assignments, and give you guidelines for the examination. 2 SUGGESTED ANSWERS TO ASSIGNMENTS Question 1 Distinguish between credit risk assessment and credit risk measurement. (10) Suggested Answer Credit risk assessment Is a credit management process that seeks to identify and control risks by determining the borrower’s probability of repaying the debt√. Through credit analysis, an assessm...

Credit risk measurement While credit risk assessment relies on borrower provided information, credit risk measurement relies on lender’s analytics and risk measurement tools√ rather than the borrower’s. Credit risk measurement also has three goals. The first goal is to limit the credit risk exposure√ that the lenders accept when extending the debt. By determining the probability of a loss and the loss exposure amount over a period of time, the debt facility can be better structured...

RSK4804 Latest exam pack questions and answers and summarized notes for exam preparation. Updated for 2024 exams . For assistance Whats-App.0.6.7..1.7.1..1.7.3.9 . All the best on your exams!!