Diversification
Economic capital – how much do you really need?
Economic capital is becoming the language of risk. While market, credit and operational risk have different determinants and use different methodologies, the levels of risk can all be summarised in a common dimension – the amount of economic capital…
Overcoming the hurdle
How should capital be allocated to different business lines in a financial institution? ThomasWilson explores this question from an investor's perspective by constructing a statisticalmodel that measures the risk of individual business types.
Overcoming the hurdle
How should capital be allocated to different business lines in a financial institution? Thomas Wilson explores this question from an investor’s perspective by constructing a statistical model that measures the risk of individual business types. The…
Diversification of Morgan Stanley
One year after Sept. 11, Morgan Stanley contemplates a simple thought with complex repercussions: Don't put all of your eggs in one basket.
Globalisation and equity index exposure
Equity diversification