Question: I am trying to understand what the basel standardized approach is? It seems to require some sort of weighted average found on the bis website...

I am trying to understand what the basel standardized approach is? It seems to require some sort of weighted average found on the bis website... Or my second assumption is its asking for market risk capital charge on the securities?

MMC Bank has an equity trading portfolio that consists of long positions of 2,750 shares of McDonald's Corp. at a price of $97.50; 3,500 shares of Duke Energy at a price of $65.00; and 1,000 share of the Swiss firm USB Bancorp at a price of $47.50. In addition the bank has sold short 1,500 shares of the Japanese technology firm Sony at a price of $32.00 and 750 shares of McDonald's Corp. What is the amount of capital that MMC Bank is required to keep against this portfolio according to the Basel Standardized approach?

$135,360.52

$102,843.33

$36,987.33

$116,044.60

$98,373.59

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