Question
A bank borrows Rs.50 crore from call money market on a
daily basis. It invests in 5-year Government of India bonds with YTM of 7.10% having market value of Rs.40 crore. The bank plans to sell these bonds within 20 days. The bank faces the following risk in this case?Solution
Market risk is the risk of loss arising from movements in market prices or rates away from the rates or prices set out in a transaction or agreement. The investment in government bond is for 20 days during which the bank faces the risk of change in the market value of the bond thereby exposing it to the market risk.
Two fair dice are thrown. What is the probability that the sum is a prime number?
The names of 17 students from section A, 18 students from section B and 19 students from section C were selected. The age of all the 54 students was dif...
A bag contains (2x + y) red balls, 32 black balls, and (3x – y) yellow balls. The probability of drawing a red ball is 4/13, and the probability of dr...
Given that E and F are events such that P(E) = 0.8, P(F) = 0.4 and P(E∩ F) = 0.2. Find P(F|E).
Two schools, A and B participate in a Quiz competition. The probability of A’s winning is 3/7 and the probability of B’s winning is 3/5. Wha...
Three persons i.e. ‘P’, ‘Q’ and ‘R’, are given the same puzzle to solve. The probability that ‘P’, ‘Q’ and ‘R’ will solve the pu...
A bag contains 8 Green and 10 Red balls. One ball is drawn at random. What is the probability that the ball drawn is Red?
Two hats are picked at random, what is the probability that all hats are of green colour?
Two schools, A and B participate in a Quiz competition. The probability of A’s winning is 3/7 and the probability of B’s winning is 3/5. Wha...
What is the probability that the cards drawn contains 1 red card, 1 purple card and 1 yellow card?
