Structuring an optimal portfolio from the Private Bank perspective and measuring the market risk using "Value-at-Risk" Methodology

ABSTRACT An important tool to quantify the market risk of a portfolio is "Value-at-Risk"(VaR) methodology. Consequently, value at risk models will play an increasingly important role within the securities industry, and some securities regulators will increasingly rely on the outputs of th...

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Bibliographic Details
Main Author: Wong, Max Yuen Kuan
Format: Dissertation (University of Nottingham only)
Language:English
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Published: 2008
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Online Access:https://eprints.nottingham.ac.uk/21723/
Description
Summary:ABSTRACT An important tool to quantify the market risk of a portfolio is "Value-at-Risk"(VaR) methodology. Consequently, value at risk models will play an increasingly important role within the securities industry, and some securities regulators will increasingly rely on the outputs of these models for regulatory purposes. This will have significant implications for both the management of the firms and for the regulators of those firms. The study done earlier was an attempt to determine the impact of associating VaR on the process of diversification to improve the return of investor's portfolio along the CML. The second study is to examine whether VaR can be applied to replace the current practice employed by Citigroup Private Bank to determine the appropriate LV of the structured product.