What is a Random Variable in Finance? Navigating Financial Uncertainties
A random variable is a variable with an unknown value or a function that gives values to each of the results of an ex...
CAMEL in finance
In the CAMEL system, five broad factors are used including Capital (C), Asset quality (A), Management (M), Earnings (...
Conditional Distribution
A probability distribution for a sub-population is known as a Conditional Distribution that a randomly selected item ...
What is Kurtosis?
Kurtosis measures a distribution's shape, specifically the total probability in the distribution's tails compared to ...
Concentration Risk and Concentration Ratio
Concentration risk is the risk of financial loss that may arise due to exposure to multiple counterparties for a spec...
Solvency II
Solvency II is a Directive in European Union law that codifies and harmonizes the EU insurance regulation.
Forward Rates
Forward rates is the settlement price of a transaction that will not take place until a predetermined date. The futur...
Collateralization
Collateralization concept says that when two parties are involved in a trade, one party will have a negative exposure
What is a Confidence Interval?
A confidence interval is a range of parameters that complements the rejection region.