Date of Award

5-2012

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

Committee Chair(s)

Drew Dahl

Committee

Drew Dahl

Committee

Ben Blau

Committee

James Feigenbaum

Abstract

Financial institutions in the Dominican Republic, since 2004, have used the regulatory Value at Risk to measure market risk. This method is subject to criticism. The purpose of this study is to compare the regulatory VaR method against the Historic Simulation, Generalized Autoregressive Conditional Heteroskedasticity, and Monte Carlo approaches. The latter is more conservative and its assumptions are more realistic.

Comments

This work made publicly available electronically on April 12, 2012.

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