Using statistical models to estimate the maximum losses a ...

[charchew]

Using statistical models to estimate the maximum losses a portfolio's value is likely to sustain over a particular time period is called:
 
  A) gap analysis
  B) duration analysis
  C) value-at-risk approach
  D) credit-risk analysis

Question 2

Assess the impact on the bond market of the rise in Internet trading of stocks.
 
  What will be an ideal response?

[rachel]

Answer to Question 1

C

Answer to Question 2

The liquidity of the stock market has been increased by Internet trading of stocks. This increase in the desirability of stocks, all else being equal, results in a shift to the left in the demand curve for bonds, lowering the price and raising the interest rate.

[charchew]

Excellent

[covalentbond]

Thanks for the timely response, appreciate it