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Analyse the cibc risk profile with specific reference to market risk .
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- Define market riskCompare and contrast the MPT with the CAPM with reference to the following aspects: Risk measurement; Risk-return graphical presentation – Capital Market Line (CML) versus Security Market Line (SML); Usage in portfolio management.Compare and contrast systematic and unsystematic risk and how it affects a portfolio.
- Differentiate between (a) stand-alone risk and(b) risk in a portfolio contextComparing Value at Risk (VAR) and Expected Shortfall (ES), which is preferred by regulators for measurement of market risk and why? Please explain your answer.Market risk is referred to as: systematic risk. total risk. diversifiable risk. asset specific risk.
- Provide one example of a calculation of risk and discuss its significance.Explain both the historical and the forward-looking approaches toestimating the market risk premium.Define the terms, or give short explanations. -risk-free rate -risk management -risk neutrality risk preference -risk premium -risk-return trade-off