Risk Management

This is an investor profile questionnaire. Respond to the 7 questions, and see your total score for the Risk Tolerance and Time Horizon. In your risk analysis, discuss the following:

  • What type of investor are you (e.g., risk conservative, moderate aggressive)?
  • What is your score of risk tolerance?
    • Does this score result fit into your current investment strategies?
  • Provide a conclusion that links the relationship between the risk tolerance and risk management practices.

Risk Management

Liquidity is a financial institution’s ability to meet its cash and collateral obligations without sustaining losses.

  • Discuss why the degree of liquidity risk is different for different types of financial institutions (e.g., retail banks, life insurance companies, hedge funds).
  • Discuss some of the risk management practices for liquidity risk.

risk management



You work at the Treasury department of XYZ Corporation (your group will be assigned a firm). You

oversee XYZ’s FX risk management. XYZ has an account receivable of C$23,358,500 due on Wednesday,

March 28, 2018. You are concerned with the potential depreciation of C$ value vs. $ and want to hedge

the position. You always consider the following hedging strategies to manage the FX exposure:

  • Forward
  • Futures (CME)
  • Options (Philadelphia Stock Exchange)
  • Money market
  • Combination of Forward and Options


  1. You will sell April maturing Canadian dollar futures contracts on Friday, February 9, 2018 at the

February 9, 2018 opening price. Record February 9 opening price and each day’s settlement price from

February 9 through February 15.

  1. If there are margin calls, you will come up with the necessary cash to bring your account back to the

initial margin. If the account balance goes above the initial margin, you will leave the entire amount in

the account. Funds in the account will not earn any interest.



Assignment: Forecast the March 28, 2018 spot exchange rate for your currency. Provide a one to two-page (≈ 450

to 500 words) defense for your forecast.


What aspects of a risk assessment do you feel are the most important? Give examples to support your answer and explain your rationale.(ONE AND HALF PAGES)



Allow your discussion posts to be detailed and capable of sharing knowledge, ideas and points.  You must discuss the topic using your own words first.  Using your own words indicate you understand the topic of discussions.  Secondly, you must cite your sources in-text.  This is necessary to justify your points. Sources from several sources showed good research abilities.  Lastly, you must provide references at the bottom of your post.  A discussion post without justification with sources does not show proper research abilities. A terse and not detailed discussions represent post that would not provide enough sharing of knowledge or proper understanding of the topic. DO NOT just copy and paste a sentence from online with citation at the end as your own discussion. I have not asked for definitions, I asked for discussions and will not buy this.  You must show understanding of the discussion topic by using your own words to describe the topic and then justify that with sources.


www.citationmachine.net to format references into the APA style if necessary. Extremely important. Intext citations is very essential and highly needed as well.


use double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA citation method (citation should be relevant and current). Page-length requirements:1 and half pages at least. Make sure you cite if you take a piece of someone’s work, very important and your reference should relate to your writing (don’t cite a reference because it relates to the course and not this very paper) at least 4 current and relevant academic references. No heavy paraphrasing of others work.


please communicate for any clarifications and please read instructions and follow them. Some tutors don’t pay attention to instructions at all. Very important

I am not doing try and error here so please do not send a hand shake if you have no ideas or experience with research.