Scenario Analysis and Stress Testing - Generating the Scenarios
4 important questions on Scenario Analysis and Stress Testing - Generating the Scenarios
What is the historical imulation approach for generating scenarios?
What is conditional stress testing?
If scenario generated involves only a few "core" variables, regress other "peripheral"veraibles on the core variables to determine their movements
What is reverse stress testing?
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What are the incentives of a financial institution?
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