Standardized betas are used in fundamental factor models not macroeconomic factor models.
…not accept supervisory responsibility until the firm adopts reasonable procedures to allow adequate exercise of supervisory responsibilities.
Thus a charter holder or candidate should undertake a review prior to accepting a position with supervisory authority.
a weighted composite of similar portfolios rather than using a single representative account such as a composite including all client accounts.
Constant Return to Scale
This means if all inputs:
- T = Growth of Technology
- K = Growth of Capital
- L = Growth of Labor
- (1-α) = labor cost in total factor cost
are increased at the same percentage then output rises at that percentage.
g = ∆Y/Y = ϑ/(1-α) + n
ϑ = growth rate of total factor production
(1-α) = labor cost in total factor cost
n = labor force growth rate
- flow mechanism
- portfolio composition mechanism
- debt suitability mechanism
- Spread in the interbank market for the same currency pair
- Size of the transaction
- Relationship between the dealer and client.
that provides an estimate of the average loss that would be incurred if the VaR cutoff is exceeded.
Pw – Pd = D * [(1 – Td)/(1 – Tcg)]
Pw = Stock price prior to dividend and eligible for dividend
Pd = Stock price after dividend
D = amount of dividend
Tcg = marginal capital gains tax
Td = marginal dividend tax
Solve for missing variable, usually Td.