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MNO3706 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE August 2024 R48,31   Add to cart

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MNO3706 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE August 2024

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MNO3706 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE August 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 1. Explain the use the technique used to measure or manage risk. (10) 2. Clarify the fundamental principles of learning. (10) 3. Expla...

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  • August 10, 2024
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, MNO3706 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2024 - DUE August 2024 ; 100%
TRUSTED Complete, trusted solutions and
explanations. For assistance, Whats-App




1. Explain the use the technique used to measure or manage risk.
(10)




Risk management is a critical component of decision-making in various
sectors, from finance and business to healthcare and environmental
management. Effective risk management involves identifying, assessing,
and mitigating risks to minimize potential negative impacts. Among the
various techniques used to measure or manage risk, quantitative methods
such as Value at Risk (VaR), Stress Testing, and Monte Carlo
Simulation, as well as qualitative methods like Risk Assessment Matrix
and Scenario Analysis, are widely recognized. Each technique has its
own strengths and applications, making it essential to choose the
appropriate one based on the context and objectives.

Value at Risk (VaR)

Value at Risk (VaR) is a popular quantitative technique used to measure
the risk of loss in financial portfolios. VaR estimates the maximum
potential loss an investment portfolio could face over a specific time
frame, given a certain confidence level. For example, a 1-day VaR at a
95% confidence level might indicate that there is a 5% chance the

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