Regression with Multiple Explanatory Variables
After completing this reading, you should be able to: Distinguish between the relative assumptions of single and multiple regression. Interpret regression coefficients in multiple regression. Interpret goodness of fit measures for single and multiple regressions, including R2 and adjusted R2….
Risks faced by CCPs: Risks caused by CCPs
After completing this reading, you should be able to: Identify and explain the types of risks faced by CCPs. Identify and distinguish between the risks to clearing members as well as non-members. Identify and evaluate lessons learned from prior CCP…
Governance over Stress Testing
After completing this reading, you should be able to: Describe the key elements of effective governance over stress testing. Describe the responsibilities of the board of directors and senior management in stress testing activities. Identify elements of clear and comprehensive…
Basic Statistics
After completing this reading, you should be able to: Interpret and apply the mean, standard deviation, and variance of a random variable. Calculate the mean, standard deviation, and variance of a discrete random variable. Interpret and calculate the expected value…
Fundamentals of Probability
After completing this reading, you should be able to: Describe an event and an event space. Describe independent events and mutually exclusive events. Explain the difference between independent events and conditionally independent events. Calculate the probability of an event for…
Properties of Interest Rates
After completing this reading, you should be able to: Describe the various categories of interest rates (Treasury rates, LIBOR, Secured Overnight Financing Rate (SOFR) and repo rates, Swaps, and explain what is meant by the “risk-free” rate). Calculate the value…
Performing Due Diligence on Specific Managers and Funds
After completing this reading, you should be able to: Identify reasons for the failures of funds in the past. Explain elements of the due diligence process used to assess investment managers. Identify themes and questions investors can consider when evaluating…
Information Risk and Data Quality Management
After completing this reading you should be able to: Identify the most common issues that result in data errors. Explain how a firm can set expectations for its data quality and describe some key dimensions of data quality used in…
Standardized Measurement Approach for Operational Risk
The Basel Committee emphasizes consistency in implementing post-crisis controlling reforms. This consistency improves the flexibility in the banking system, promotes public sureness, and brings a level playing field for international banks. In 2014, a committee addressed flaws in the current…
Classifications and Key Concepts of Credit Risk
Classification Default Model and Value-based Valuations A borrower’s default constitutes default risk. On the other hand, in case of default, the amount recovered is usually than the amount lent. The risk associated with this is referred to as recovery risk….
