Q5. Jerome J. Jerome is considering investing in a security that has the following distribution of possible one-year returns:Probability of occurrence 0.10 0.20 0.30 0.30 0.10Possible return 0.10 0.00 0.10 0.20 0.30What is the expected return and standard deviation associated with the investment?
What is the total energy produced by these panels on the day in question (in kWh)?What is the total energy produced by these panels on the day in question (in kWh)?
What complications do acts of omission or commission of bank employees introduce to the dynamic of frauds in banking?
Why does it seem bank managements and regulatory authorities are fighting a losing battle on fraud prevention?
Do you agree that fraud is a hydra, the canker of crime in modern society, and a phenomenon in banking?
How do frauds defy the odds and persist—ostensibly demystifying the banking world of absolute secrecy?
How do the dynamic, incidence, and psychology of frauds dramatize operational risks of banks in developing economies?
What does the phrase “bourgeoning fraud industry” connote? How does fraud skew the spectrum of operational risk in banking?
What operational risk management lessons may be learned from the failure of the fraud in XYZ Bank?
In what ways would it be correct to say that frauds personify operational risks in modern banking practice?
Did Mars act in good faith by issuing queries to Forest and the Q branch’s operations manager?
Why, in your opinion, did Fuel, Mars, and the ED distance themselves from the fate that befell Forest and the branch operations manager?
How would you realistically characterize Booth based on the apparent and remote facts of this case study?
Do you think there were insider accomplices for the abortive fraud? If yes, who do you suspect?
How should transactions processing risks and controls be rightly or wrongly situated in the context of paying and clearing bank checks?
What roles does reconciliation of banks’ accounts play in enhancing possibilities for stemming operational risks in banking?
How did operational fallout of transactions processing take center stage of challenges facing bank managements in developing economies?
What features of operational risks elevate banking operations and transactions processing to the top of bank management priorities?
It might not have been easy to crack the fraud. How do you think the bank’s inspectors were able to uncover the crime?
Which aspects of banking operations and transactions processing errors tend to crystallize operational risks in banking?
Do you think that the bank’s employees in operations who handled documentation and opening of the House’s account acted in good faith?
What is your view and take on a possible suspicion of collusion between the principal officers of the House and the five lawmakers to perpetrate the fraud?
Why was it possible—and even easy—for the five lawmakers to successfully maneuver the branch to open the fraudulent account?
How should the branch’s operations officers have been able to prevent the deception by which the fraudulent account was opened?
What operational risks do issues in work situations of employees portend for banks in developing economies?
Do you think the reasons that informed the split between business and operations banking functions bank-wide are really cogent?
How may orientation and disposition of employees to service help check or foster operational risk in banking?
Why would uncritical chase after service be a reason for fraud to find its way into patronage-service calculation of banks and customers?
Do you think that the response of the CEO to the MD’s report could be a trigger point for bank fraud if the employees know about it?
In what ways can operational risk in banking be best understood in the context of gaps in services that banks offer to customers?
What can you make out in the position taken by the bank’s CEO?
How do you think the employees would react if they were privy to their chief executive’s position on the issue?
What are the possible repercussions of the CEO’s action on the essence of the bank’s business?
Assess applications of a broad view of operational risk and its implications for banking in developing economies?
How have banks managements in developing economies grappled with any named typical risk which external event occasioned?
Do you agree or disagree that every threat that a bank faces crystallizes some operational risk in one way or the other?
In what ways do bank operational risk dynamics and nuances inform banks internal control systems in developing economies?
Can Moon’s indifference to the plight of Sun and UV Bank be really justified on grounds of banking expediency?
How does interaction of operational risk and other risks permeate banking outcomes in developing economies?
Would you say the management of UV Bank was decisive in placing Sun on suspension following XY Bank’s default?
Why—in your opinion—should or shouldn’t the management of UV Bank frown upon the action of Sun?
In what ways would you say the action of Sun in this case study really precipitated operational risk for UV Bank?
How would you characterize the management of XY Bank based on facts of this case study and the situation of the bank?
In what sense would it be right to target banks in the fight against corruption in developing economies?
To what operational risk does this case study allude? Give reasons for your view and how particular issues implied in the case study underlie it.
Would you say banking principles informed the approach adopted by the banks in responding to the trail of crisis left by the policy?
Why would banks in developing economies want to bemoan the loss or depletion of public sector funds in their deposit portfolios?
How may this case study possibly open up new vistas and nuances of bank operational risk in developing economies?
What factors, based on this case study, contributed to the sweeping effect of the government’s policy on banks in Nigeria?
Identify and explain the features, risks and control of a typical financial derivative traded on the Stock Exchange.
Would you say that boom to bust really is a regular phenomenon of the stock market in developing economies?
In what respects do the roles of the SEC compare with those of the Stock Exchange?
Why—as an astute investor in the capital market—would you want to invest in an equity rather than debt security and vice versa?
What is a capital market? Of what significance are capital markets in developing economies?
How do the characteristics of capital market inform the conduct of the trading of equity and debt instruments?
In what ways does this case study shed light on the maneuverings that take place behind the scenes in capital markets?
Appraise critically the ripple effect of Wood Bank’s default in this case study and show how it would have been obviated.
Using this case study as basis, explain the cause of bank risk in terms of how credit risk interacts with liquidity risk.
Was the privatizing office, in your opinion, decisive in handling Wood Bank’s misuse of the return monies?
How do the risks of CP compare with those of BA as money market treasury instruments?
What is a L/C? How should banks in developing economies mitigate risks in L/C transactions?
Critically assess the reasons Wood Bank had for holding back on returning monies for the unsuccessful subscriptions.
Why, in your opinion, must the dealers in interbank domestic currency be well-versed in the instruments of the money markets?
What features of money markets make instruments traded in them attractive to the interbank dealers in developing economies?
Do foreign exchange management process, dynamics, and mechanisms bear on risks of banking in developing economies?
Why is there a preponderance of foreign exchange rate risk in the hazards of banking in developing economies?
Identify and discuss the major exchange rate risks that beckon for banks in developing economies
How do foreign exchange intricacies impart risks to banking in developing economies?
What are the implications of failed foreign exchange management process for banking in developing economies?
In what ways do freely floating and fixed exchange rates compare based on their respective economic outcomes?
Explain the following terms—noting their wider implications for banking and the economies in developing countries:
Foreign exchange parallel market
Arbitrage opportunity in foreign exchange dealing
Foreign exchange round tripping
Are there things Obi did wrongly that you think bank managements should avoid in dealing with foreign exchange risks?
Why in your opinion has the goal of developing nations to achieve realistic exchange rates for their domestic currencies been elusive?
Would Obi’s reasons for consulting the witch-doctor and the oracle be logical in managing foreign exchange risks?
In what ways do actions Obi took compare with how bank managements might respond to foreign exchange intricacies?
How does this tale shed light on foreign exchange management dilemma of government in developing economies?
What lessons can foreign exchange policy makers and administrators in developing economies learn from Obi’s experience?