Consider the following discrete probability distribution of payoffs for two securities, A and B, held in the trading portfolio of an FI Which of the two securities will add more market risk to the FIs trading portfolio according to the VAR and ES measures Probabilit 50 00 49 00 1 00 Probabilit S80m...

The expected return on security A 05080m 04960m 001740m 62m The expected return on s ...

Consider the following discrete probability distribution of payoffs for two securities, A and B, held in the

Question:

Consider the following discrete probability of payoffs for two securities, A and B, held in the trading of an FI:

Which of the two securities will add more market risk to the FI€™s trading portfolio according to the VAR and ES measures?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...