The chief executive officer of a financial institution must choose whether to grant a $3 million loan to an investor in mutual funds. The financial institution makes loans of $2 for every $ 1. The dilemma here would be to decide whether the investment is justified by the dangers connected with this loan application.
The case involves assessing the market risk of the planned investment program, the many hazards related to the loan, including the credit risk attached to the borrower, and also the currency risk of a loan in Canadian dollars and investments in foreign securities.
PUBLICATION DATE: July 09, 2012 PRODUCT #: W12435-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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