Explain Probability of default and briefly discuss its uses………………………………………………………(10) The probability of default (PD) of […]
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Client loan application terms.
As a credit analyst for Ledig Commercial Bank, you assess client applications for term loans […]
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Headed for bankruptcy
The Z-score formula for predicting bankruptcy was published in 1968. One of the perpetual worries […]
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Altmans Z-Score calculate the risk of bankruptcy
The CEO of Mabopane Lt approached your bank for a credit facility Following are ratios […]
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Least Cost and Deductible – TEC.
Use the tables provided below to calculate the average number of incidents per annum and […]
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Least Cost Rule and Deductible.
You are an Insurance Manager at More Power which is an electricity-generating company. You are […]
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Cash management Models.
There are two main cash management models namely, the Baumol’s model and the Miller-Orr model. […]
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Correlation coefficient,
We have two investments, Investment Yoga and Investment gym. The returns for investment Yoga are […]
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Portfolio standard deviation, variance.
The example used here has been extracted from Correia et al (1993), for 5 years, […]