CornishFisher Expansion and ValueatRisk: CornishFisher Expansion and ValueatRisk Methods in Application to Risk Management,Used

CornishFisher Expansion and ValueatRisk: CornishFisher Expansion and ValueatRisk Methods in Application to Risk Management,Used

SKU: DADAX3846515353 In Stock
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One of the major problems faced by banks is how to manage the risk exposure in large portfolios. According to Basel II regulation banks has to measure the risk using ValueatRisk with confidence level 99%. However, this regulation does not specify the way to calculate ValueatRisk. The easiest and most common way to calculate ValueatRisk is to assume that portfolio returns are normally distributed. The previous crisis shows that the regular methods are unfortunately not always enough to prevent bankruptcy. This study is devoted to compare the classical methods of estimating risk with other methods such as CornishFisher Expansion (CFVaR) and assuming generalized hyperbolic distribution. For this study, we estimate the risk in a large portfolio consisting of ten stocks, chosen from the NASDAQ 100list and from different sectors in order to have welldiversified and highly liquid portfolio. The results show that for a welldiversified large portfolio none of the risk measures are violated. However, for a portfolio consisting of only one highly volatile stock we prove that we have a violation in the classical methods but not when we use the modern methods mentioned above.

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Shipping & Returns

Shipping
We ship your order within 2–3 business days for USA deliveries and 5–8 business days for international shipments. Once your package has been dispatched from our warehouse, you'll receive an email confirmation with a tracking number, allowing you to track the status of your delivery.

Returns
To facilitate a smooth return process, a Return Authorization (RA) Number is required for all returns. Returns without a valid RA number will be declined and may incur additional fees. You can request an RA number within 15 days of the original delivery date. For more details, please refer to our Return & Refund Policy page.

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Warranty

We provide a 2-year limited warranty, from the date of purchase for all our products.

If you believe you have received a defective product, or are experiencing any problems with your product, please contact us.

This warranty strictly does not cover damages that arose from negligence, misuse, wear and tear, or not in accordance with product instructions (dropping the product, etc.).

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