Risk management techniques PDF

Running head: RISK MANAGEMENT TECHNIQUES
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RISK MANAGEMENT TECHNIQUES
Name of the Student
Name of the University
Author’s Note

RISK MANAGEMENT TECHNIQUES
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Table of Contents
Questions & Answers......................................................................................................................2
References......................................................................................................................................10

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Questions & Answers
Q.4: Calculate the average daily yield and standard deviation of the daily yields for EACH shares
and for the total portfolio in Canadian dollars.
The average is being calculated by taking the mean of all the daily returns. Along with
that, the standard deviation and variance is being calculated based on the formula of portfolio
variance (Charpentier 2018). Daily average return and the standard deviation of each of the
stocks can be represented as follows:
The expected portfolio return is the product of the average Dily return of the portfolios
and the percentage iof initial investments that can be shown as follows:

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The portfolio return,
The standard deviation of the portfolio and its corresponding variance can be computed
from the aforementioned data and it came out to be 0.008736511 and 0.0000763. This
reveals the fact the selected portfolios are close to optimum as the expected portfolio is
close to 0.094 while the risk associated with it that is standard deviation is minimum at
0.00873 respectively (Bernard et al., 2017).
Q.5: Calculate the Portfolio Value in Canadian Dollars as of October 30, 2018