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.
Scenario Analysis
Scenario analysis is a method of evaluating probable future risk factors & alternative outcomes. It assesses the impa...
What are Mortgage Backed Securities Prepayment
Mortgage-Backed Securities are long term contracts with payments of both interest and principal.The prepayment option...