Why is economic capital across market, credit and operational risks simply added up to arrive at an estimate of
aggregate economic capital in practice?

To protect the oranges harvest price level, a farmer needs to take a hedge position. Provided that he produces
the amount he hedged, which one of the following four strategies will allow the farmer to accomplish his goal?

Gamma Bank is active in loan underwriting and securitization business, and given its collective credit
exposure, it will be typically most interested in the following types of portfolio credit risk:
I. Expected loss
II. Duration
III. Unexpected loss
IV. Factor sensitivities

Which of the activities represent examples of market manipulation?

Present value of a basis point (PVBP) is one of the ways to quantify the risk of a bond, and it measures: