100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
RSK4805 Assignment 3 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED R50,00   Add to cart

Exam (elaborations)

RSK4805 Assignment 3 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED

 24 views  1 purchase

RSK4805 Assignment 3 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references .. Question 1 (25 marks) 1.1 A bank estimates that its profit next year is normally distributed with a mean of 0.8% of assets and a s...

[Show more]

Preview 2 out of 13  pages

  • August 8, 2024
  • 13
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
All documents for this subject (11)
avatar-seller
VarsityC
RSK4805
Assignment 3 2024
Unique #:
Due Date: 15 August 2024



Detailed solutions, explanations, workings
and references.

+27 81 278 3372

, QUESTION 1

1.1.

To be 99% sure that the bank will have positive equity at the end of the year, we
need to find the value X where the profit plus equity is greater than zero, given the
normal distribution parameters.

Mean=0.8%

Standard deviation=2%

The z-value for 99% confidence is 2.33.

X=Mean+(z × Standard deviation)

X=0.8%+(2.33×2%)

X=0.8%+4.66%

X=5.46%

Therefore, the bank needs 5.46% equity as a percentage of assets to be 99% sure
it will have positive equity at the end of the year.



1.2.




Step-by-Step Calculation




Varsity Cube 2024 +27 81 278 3372

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller VarsityC. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82191 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00  1x  sold
  • (0)
  Buy now