Calculate the portfolio at risk ratio for thirty days

Assignment Help Microeconomics
Reference no: EM131917459

Problem

There is a micro finance institution in Tanzania that is worried about a set of payments that have yet to arrive. Without these payments, it won't be able to disburse as much in the next round of loans as it had hoped to. The gross loan portfolio is valued at $200,000. There are 50 outstanding loans that each have missed two installments of a $200 loan to be paid biweekly over 5 months. Before missing these two consecutive installments, the borrowers each made the first three installments. Calculate the portfolio at risk ratio for 30 days and explain how this affects the security of the loan portfolio.

Reference no: EM131917459

Questions Cloud

How might such high interest rates be reduced : Under what conditions would it be a bad thing? How might such high interest rates be reduced-and with what costs and benefits?
Write about an integumentary system disorder : Write about an Integumentary System Disorder. Make sure sections A --> F are clearly labeled (as shown in my Hemophilia example)
What is the diagnosis : This has happened to player once before in high school. Some mild swelling is present and he is in pain.
Explain professor bowie reasoning : Professor and business ethics scholar Norman Bowie: Environmentalists frequently argue that business has special obligations to protect the environment.
Calculate the portfolio at risk ratio for thirty days : Calculate the portfolio at risk ratio for 30 days and explain how this affects the security of the loan portfolio.
Discuss the significance of case reports : Discuss the significance of case reports (studies), case series, and case-control studies in healthcare research. How are they different?
How might you be able to obtain a more correct measurement : Do you think this market interest rate correctly reflects the lending rate for the NGO? How might you be able to obtain a more correct measurement?
Discuss the solution of mexico water problem : Mexico is quickly running short of water: 85 percent of Mexico's economic growth and 75 percent of its 100 million people are in the north.
Screening or diagnostic test : List and explain two characteristics (other than validity) you would evaluate when choosing to use a screening or diagnostic test. Why is each important?

Reviews

Write a Review

Microeconomics Questions & Answers

  How can paying an above-market wage in a firm

In 1914, Henry Ford increased the wage he paid workers in his car factory in Dearborn, Michigan to $5 per day. This wage was more than twice as much as other.

  Explain why this is a matched-pairs experiment

Explain why this is a matched-pairs experiment and give reasons why the pairing should be useful in increasing information on the difference between the mean reaction times to prohibitive and permissive traffic signs.

  Explain what principles of economics relate to the decision

Critical Thinking: Last year Congress passed a bill creating a new national health care system that is not yet fully explained. What principles of economics relate to this decision Describe how each relates and what issues must we consider.

  Find all pure and mixed strategy equilibria of the game

there are two countries that are battling in two locations location a and location b. suppose that each country has 2

  Define unemployment rate and labor force participation rate

Define unemployment rate and labor force participation rate and understand how they are computed. Identify the three types of unemployment

  Identify the cost of the apple iphone six plus

Identify the cost of the Apple iPhone 6 plus. Discuss whether or not demand and supply are in equilibrium or is demand greater than supply. Identify two factors that would cause the demand curve to shift to the left.

  Both sven and jeff know each others

Suppose that Sven has a V W Cabrio that he would like to sell. Unfortunately, the speedometer on the car is broken and in need of repair. Sven is accustomed to driving the car in this condition and it is worth $3,000 to him fixed or not. Sven would l..

  How many units should each plant produce to maximize profit

How many units should each plant produce to maximize profit at that price and a perfect competitive firm faces a market price of $10 for its output X

  Why carbon tax cheaper way to reduce carbon dioxide emission

According to an article in the New York Times: "Top economists agree a tax on fuels and the carbon they spew into the atmosphere would be the cheapest way to combat climate change." Why would a carbon tax be a cheaper way to reduce carbon dioxide ..

  Define trade-off between inflation and unemployment

Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy.

  Real estate development

Can you also describe the logic of how you approach this question? how were you able to understand the information.Assuming that the developer is risk neutral, what is the maximum cost of the impact study such that it is still worthwhile for the deve..

  Types of conflicts and the three loci of conflicts process

What are the three types of conflicts and the three loci of conflicts process? What are the steps of the conflict process? What are the differences between distributive and integrative bargaining? What are the five steps in the negotiation process? W..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd