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Sumitomo Bank's Risk Manager Has Estimated That the DEARs of Two

question 1

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Sumitomo Bank's risk manager has estimated that the DEARs of two of its major assets in its trading portfolio, foreign exchange and bonds, are -$150,000 and -$250,000, respectively
-What is the total DEAR of Sumitomo's trading portfolio if the correlations among assets are ignored?


Definitions:

Internal Consistency

A measure of the reliability of a test or scale; assessing if various items that propose to measure the same general construct produce similar scores.

Licensure Exam

A licensure exam is a standardized test that individuals must pass to receive a professional license in a specific field or occupation.

Mean

A statistical measure that represents the average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Range

The difference between the highest and lowest values in a data set, representing the spread or distribution of the values.

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