cf.docx - Risk Systematic risk i Interest Rate Risk Interest rate risk I s the likelihood of decrease in the estimation of an assets which cause from

cf.docx - Risk Systematic risk i Interest Rate Risk...

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Risk Systematic risk i.) Interest Rate Risk Interest rate risk I s the likelihood of decrease in the estimation of an assets which cause from unpredicted fluctuation in interest rate. Interest rate risk is generally connected with fixed- income assets such as bonds but not with equity investment like stocks. The interest rate part of the essential drivers of a bond’s cost. Current interest rate and the bond’s price have an opposite relationship which interest rate decrease bond’s price will increase, interest rate increase bond’s price decrease. The Group’s presentation to interest rate risk which emerges from interest bearing budgetary resources and liabilities. The Group’s arrangement is to get the greatest interest rate accessible. Since the Group’s introduction to interest rate risk is irrelevant, affectability analysis which is not displayed. ii.) Liquidity Risk Liquidity risk is the risk that an organization or financial institution might be not able to fulfil the short-term financial requirement. This generally happens because of the failure to change
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  • Summer '18
  • kelly

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