Question: How can market risk be defined in absolute terms? A dollar exposure amount or as a relative amount against some benchmark. The capital required to
How can market risk be defined in absolute terms?
A dollar exposure amount or as a relative amount against some benchmark.
The capital required to offset a sudden decline in the value of its assets.
The gap between promised cash flows from loans and securities and realized cash flows.
The change in value of a financial institution's assets and liabilities denominated in nondomestic currencies.
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