Homework 2 Solution‚ Fin 500Q‚ Quantitative Risk Management 1. Assume gold price risk is diversifiable‚ and the riskless rate is 5%. A firm produces a unit of gold a year from today. Assume all interest is compounded annually and is tax deductible. The price of gold is either $500 or $200‚ each with probability 0.5. Suppose the firm pays taxes at a rate of 40% for all its cash flow in excess of $300. The value of the firm is the expected discounted value of its cash flow less the expected discounted value
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.................................................................................................... 6 5. Profit and loss Analysis ...................................................................................................... 8 6. Value at Risk .................................................................................................................... 12 6.1 The Historical Simulation ........................................................................................... 12 6.2
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498 Assignment 4 Spring 2013 Due Date: March 26‚ 2013 1. Consider the Luxury Seaside Hotel Risk Management case you put together in your previous assignment. Answer the following questions regarding each one of the risk sources you have identified (at least 4). i) If you desired to follow a statistical approach in the assessment of the risk‚ what hard data would you need‚ what hard data do you think would be available‚ what near accident data could be used to support the available
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Case Study into the Application of Composite Technology – A400M Wing Spars Candidate ID: 499751 November 2014 Table of Contents Introduction to the Airbus A400M Atlas 3 CFRP Structure and Properties 5 Structure – CFRP 5 Properties – CFRP 6 Processing Method 7 Processing Method – Spars 8 Prepreg 8 Automated Tape Laying 8 Autoclave Processing 8 CFRP vs Aluminium Alloys 9 Advantages – Comparison of CFRP vs Aluminium 9 Disadvantages of CFRP 9 Failure of Composites 10 Future Materials and Opportunities
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Analysis of Unilever’s Risks and Risk Management Strategies Introduction With the rapid development of modern economy‚ companies are always exposed to risks which are penetrating to all walks of life and not only exist in the products market‚ but also exist in financial market (Ballou‚ 2005). It is undoubtedly that risks jeopardize the company’s development in that they may increase the cost of a company’s operation and make it harder for a company to make a crucial decision. Accordingly‚ it is
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Network protocols for vehicle platoon control and management Part 1 Introduction to vehicle platooning Vehicle platooning is a promising application in the transportation industry to improve the safety‚ efficiency‚ and comfort for passengers with innovative capabilities. 1.1 How Vehicle Platooning Works Vehicle platooning is a convoy of vehicles with a lead vehicle driven with a professional driver and other vehicles closely followed. [pic] The main goals of vehicle platooning are: (1)
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Project Management Concepts Worksheet Concept Application of Concept in the Scenario Reference to Concept in Reading contingency reserve The issue at Harrison-Keyes is the result of a lack of planning. While issues arose regarding vendors‚ the issues only pointed to Harrison-Keyes failure to truly grasp the necessity of building in contingency plans. The disaster of those around the company should never have an equally devastating impact on the company. While Harrison-Keyes has thought
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Strategic Program Management Worksheet Table for Assignment One A: Concept B: Application of Concept in Scenario C: Citation of Concept in Reading Strategic Management Process "Strategic management is the process of assessing "what we are" and deciding and implementing "what we intend to be and how we are going to get there." Strategy describes how an organization intends to compete with the resources available in the existing and perceived future environment." Strategic management is about the
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CONSTRUCTION MANAGEMENT 4 MANAGE THE PLANNING OF WORK METHODS‚ RESOURCES & SYSTEMS TO MEET CONTRACT REQUIREMENTS MANAGE THE PLANNING OF WORK METHODS‚ RESOURCES & SYSTEMS TO MEET CONTRACT REQUIREMENTS Objective1 Manage the evaluation & selection of construction methods Objective 2 Manage the planning of work activities & resources to meet contract requirements Objective 3 Manage the selection & formation of contract team Objective 4 Manage the operations of organisation & communication system
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The Risk Profile A plot showing how firm value is affected by changes in prices or rates. Reducing Risk Exposure Although perfect hedging may be impossible‚ the normal goal is to reduce financial risk to bearable levels and thereby flatten out the risk profile. Forward Contracts: The Basics Forward contract—contract between buyer‚ who will take future delivery of the goods‚ and seller‚ who will make future delivery‚ for sale of asset in the
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