By Ruobing ZHENG
Math GR 5320: Financial Risk Management and Regulation
Assignment 2
1. Banks: Compare and contrast community banks, savings and loans, and credit unions.
a. Unlike savings and loans and credit unions, community banks are typically locally

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MATH GR
5320: Risk
Management
Lecture 2:
Structure of the
Financial
Markets
Harvey J. Stein
MATH GR 5320
Financial Risk Management and Regulation
Outline
Review
Market structure
Lecture 2: Structure of the Financial Markets
The players
Banking
Investors
R

6.00.1x Collaboration Guidelines
Throughout 6.00.1x, we encourage you to interact with your fellow students and engage
in active discussion about the course. We suggest that you use the guidelines below for
acceptable collaboration in doing so.
The staff

Tips for Success!
Deadlines are stated in the UTC/GMT timezone IMPORTANT!
Please be aware of this for your first assignment and use a time converter to make sure you
submit your assignment before it is due. We cannot offer extensions. Here are a couple of

MATH GR
5320: Risk
Management
Lecture 3: Risk
Measurement
Harvey J. Stein
Outline
MATH GR 5320
Financial Risk Management and Regulation
Review
Risk
measurement
Lecture 3: Risk Measurement
Risk measures
Formula
derivations
Summary
References
Department of

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t
2
Xt
3
Xt t
T
F
Xt
X.
X.
4
5
Xt
Xt
p
Xt
p,
p
F
p=
X1
X2
, . . .,Xn
, . . .,
Xt
X
X
Xt t
F
P Xt
xi
T
x Xt
F
x
F
i
X tn
xn
i
6
x
F
x x x x
P X
x
P X
F
x X
x X
x X
x X
x X
x
x
x x x
consistency
Xt2 <
Xt
autovariance function (ACVF)
r s
Cov X r X s
E Xr

This module will be delivered by a combination of formal lectures and tutorials.
Syllabus
Financial Assets
Shares (stocks, equity, asset]. Market capitalisation. Dividend. Index cfw_e g. FTSE 100]. Riskfree
assets.
Derivatives
Futures and forward contract