Question: Problem 1 1 ( Financial Network Risk Management ) . In risk management, Bellman - Ford can model financial transactions between institutions, where [ 1
Problem Financial Network Risk Management In risk management, BellmanFord can model financial transactions between institutions, where marks:
Each institution is a vertex, and each transaction or loan is an edge with a weight representing risk exposure.
Negative weights may indicate secure transactions with low or no risk, while positive weights represent risky or highexposure transactions.
a Describe how BellmanFord would identify the least risky transaction paths across institutions.
b Explain the significance of a negative cycle in this network and how BellmanFord can help manage it
c What insights does BellmanFord provide to risk managers in a financial network?
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