Portfolio Performance Evaluation
After completing this reading, you should be able to: Differentiate between time-weighted and dollar-weighted returns of a portfolio and describe their appropriate uses. Describe and distinguish between risk-adjusted performance measures, such as Sharpe’s measure, Treynor’s measure, Jensen’s measure (Jensen’s alpha),…
Managing And Pricing Deposit Services
After completing this reading, you should be able to: Differentiate between the various transaction and non-transaction deposit types. Compare different methods used to determine the pricing of deposits and calculate the price of a deposit account using cost plus profit…
Climate-Related Financial Risks – Measurement Methodologies
After completing this reading, you should be able to: Describe the main issues in identifying and measuring climate-related financial risks. Identify unique data needs inherent in the climate-related risks and describe candidate methodologies that could be used to analyze these…
Inflation: a Look under the Hood
After completing this reading, you should be able to: Describe how inflation dynamics differ between a low-inflation regime and a high-inflation regime. Explain the process of wage and price formation, the role inflation plays in this process, and vice versa….
Artificial Intelligence Risk & Governance
After completing this reading, you should be able to: Identify and discuss the categories of potential risks associated with the use of AI by financial firms and describe the risks that are considered under each category. Describe the four core…
The Future Monetary System
After completing this reading, you should be able to: Identify and describe the benefits and limitations of crypto and decentralized finance (DeFi) innovations. Describe the role of stablecoins in DeFi ecosystems and differentiate among the types of stablecoins. Discuss possible…
Basel III: Finalizing Post-crisis Reforms
After completing this reading, the candidate should be able to: Explain the elements of the new standardized approach to measuring operational risk capital, including the business indicator, internal loss multiplier, and loss component, and calculate the operational risk capital requirement…
Capital Regulation Before the Global Financial Crisis
After completing this reading, you should be able to: Explain the motivations for introducing the Basel regulations, including key risk exposures addressed, and explain the reasons for revisions to Basel regulations over time. Explain the calculation of risk-weighted assets and…
Solvency, Liquidity and Other Regulation After the Global Financial Crisis
After completing this reading, you should be able to: Describe and calculate the stressed VaR introduced in Basel 2.5, and calculate the market risk capital charge. Explain the process of calculating the incremental risk capital charge for positions held in…
High-level Summary of Basel III Reforms
After completing this reading, you should be able to: Explain the motivations for revising the Basel III framework and the goals and impacts of the December 2017 reforms to the Basel III framework. Summarize the December 2017 revisions to the Basel…
