(1) On selecting the manager with the best performance, options were alpha, mogdiliani, information ratio. etc
I choose " Mogdiliani " . Anyone ? many of my friends choose " IR "
(2) Answer = "declaring cash dividend will reduce Tier 1 capital" ( what about the other choices for this...
I also got confused to apply the exposures to counterparty and party .. but I remember I use the first exposure amount given in the question to multiple on the party side , the second exposure on the counterparty side.. don't remember the final answer. anyone remember the choices ? Thank you.
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