Assignment 2 Questions: Week 7 & Week 8 (15 Marks)
Q.1. Write a critical analysis on 2007-2008 financial crisis that had hit the United State
financial market and had severely affected powerful economies of the world. Please
include the following points in your writing. (8 Marks) 800 words
Introduction of the crisis
Causes of the crisis
Whom to blame for the crisis.
Conclusion
Q.2. How is market risk measured? Describe the common methods of estimating VaR?
Discuss the advantages and disadvantages of each method. (4 Marks) 400 words
Q.3. Describe the stress testing and scenario analysis in risk management. Discuss the benefits and Limitations. 300 words (3 Marks)
