Predicting Fraud by Investment Managers
After completing this reading, one should be able to: Explain the use and effectiveness of information disclosed by investment advisors in fraud prediction. Discuss the barriers and the costs incurred in implementing fraud prediction methods. Discuss ways to improve the…
Hedge Funds
After completing this reading, you should be able to: Explain biases that are commonly found in databases of hedge funds. Explain the evolution of the hedge fund industry and describe landmark events that precipitated major changes in the development…
Portfolio Construction
After completing this reading, you should be able to: Distinguish among the inputs to the portfolio construction process. Evaluate the methods and motivation for refining alphas in the implementation process. Describe neutralization and methods for refining alphas to be…
The U.S. Dollar Shortage in Global Banking and the International Policy Response
After completing this reading, you should be able to: Identify the causes of the U.S. Dollar shortage during the Great Financial Crisis. Evaluate the importance of assessing maturity/currency mismatch across the balance sheets of consolidated entities. Discuss how central bank…
Contingency Funding Planning
After completing this reading, you should be able to: Discuss the relationship between contingency funding plan and liquidity stress testing. Evaluate the key design considerations of a sound contingency funding plan. Assess the key components of a contingency funding plan…
Introduction to Operational Risk and Resilience
After completing this reading, you should be able to: Describe an operational risk management framework and assess the types of risks that can fall within the scope of such a framework. Describe the seven Basel II event risk categories…
Liquidity and Leverage
> After completing this reading, you should be able to: Differentiate between sources of liquidity risk and describe specific challenges faced by different types of financial institutions in managing liquidity risk. Summarize the asset-liability management process at a fractional reserve…
Monitoring Liquidity
After completing this chapter, you should be in a position to: Distinguish between deterministic and stochastic cash flows and provide examples of each. Describe and provide examples of liquidity options and explain the impact of liquidity options on a bank’s…
Factors
After completing this reading, you should be able to: Describe the process of value investing and explain the reasons why a value premium may exist. Explain how different macroeconomic risk factors, including economic growth, inflation, and volatility affect risk premiums…
Backtesting VaR
After completing this reading, you should be able to: Describe backtesting and exceptions and explain the importance of backtesting VaR models. Explain the significant difficulties in backtesting a VaR model. Verify a model based on exceptions or failure rates. Identify…
