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Analyse the cibc risk profile with specific reference to market risk .
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- Define market riskBriefly define and give examples of each of the following components of total risk. Which type of risk matters, and why? Diversifiable (or firm-specific) risk Undiversifiable (or systematic) 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.
- What is security Market Line (SML)? How it explains risk-return relationship? Explain different scenarios where the changes in SML occurs?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.
