Question: Problem 1 1 ( Financial Network Risk Management ) . In risk management, Bellman - Ford can model financial transactions between institutions, where [ 1

Problem 11(Financial Network Risk Management). In risk management, Bellman-Ford can model financial transactions between institutions, where [10 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 high-exposure transactions.
(a) Describe how Bellman-Ford would identify the least risky transaction paths across institutions.
(b) Explain the significance of a negative cycle in this network and how Bellman-Ford can help manage it.
(c) What insights does Bellman-Ford provide to risk managers in a financial network?
Problem 1 1 ( Financial Network Risk Management )

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