…Accord proposes to permit banks a choice between two broad methodologies for calculating their capital requirements for credit risk. One alternative is to measure credit risk in a standardised manner,…

…It would make no sense to evaluate the total riskiness of the position at the sum of the two risks as if two almost perfectly correlated positions were uncorrelated. Now…

…issue, I consulted the webpage of Aswath Damodaran to find his excel file labeled “Implied Equity Risk Premiums – United States”. The purpose of Damodaran’s analysis of stock market data…

…as opposed to the risk of the bubble bursting. However, I don’t see tighter lending requirements as “tampering” with the market. The following graph shows the trend toward riskier products….

In a series of posts CR of Calculated Risk, who posts here most Mondays, argued rather conviningly that there is a housing bubble (e.g., here, here, and here). Soon, he’ll…

…assume a risk greater than X can do so right this very instant. Just take, say, the money you’ve invested in T-Bills and put them in some riskier stock. Or…

…are much greater than the risk free interest rate. Market risk premiums are high. The one relevant to society is the sum of two terms. The first, subtraction of the…

…if one bears a lot of risk. It seems to be assumed somehow that the Federal Government bearing risk is a bad thing — at least for the Federal Government…

…of unemployment” (or NAIRU) in assisting developing countries to target the proper level of government spending needed to achieve low unemployment with minimal risk of demand-pull inflation. For the industrialized…

The use of drones against Saudi Arabian oil facilities changes the economic-market risk significantly. Until now the oil producers have done an excellent job of preventing terrorist attacks from disrupting…