Question
What will be the impact on the portfolio’s systematic
risk with the increase in the number of stocks in a portfolio?Solution
When we add more stocks to a portfolio, unsystematic risk will decrease at a decreasing rate. However, the portfolio’s systematic risk can be increased by adding higher-risk stocks or decreased by adding lower-risky stocks.
As per the BASEL Regulations, Banks shall maintain a minimum Pillar 1 Capital to Risk-weighted Assets Ratio (CRAR) of ……………………………...
Which of the following risks are associated with Banking Sector?
Recovery r isk is a part of the overall credit risk . Recovery risk is primarily dependent on __ ______
The economic value of a bank can be viewed as the sum of present values of the bank’s expected ________
Which of the following Statements is/are True?
I- AT-1 bonds are a type of unsecured, perpetual bonds.
II- The return on AT-1 bonds is u...
The CIBIL score reflects the creditworthiness of an individual borrower. What does a CIBIL score of -1 tell about the credit history of a prospective bo...
Which of the following best describes the primary role of the Central KYC Records Registry (CKYCR)?Â
The activities of the bank covering issue and underwriting of shares and debentures for its clients are known as:
When a borrower creates a mortgage in favour of the lender by deposit of title deed of immovable property as security to the lender until the loan is fu...
Which of the following factors impact the adequacy of a bank’s liquidity position ? Â
