Financial risk modeling

Discounted maximum loss

Discounted maximum loss, also known as worst-case risk measure, is the present value of the worst-case scenario for a financial portfolio. In investment, in order to protect the value of an investment, one must consider all possible alternatives to the initial investment. How one does this comes down to personal preference; however, the worst possible alternative is generally considered to be the benchmark against which all other options are measured. The present value of this worst possible outcome is the discounted maximum loss. (Wikipedia).

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This video explains how to determine a maximum loan amount based upon the down payment being a percent of the total amount. http://mathispower4u.com

From playlist Finance: Annuities and Loans

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From playlist Percent of Change

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From playlist Finance: Annuities and Loans

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From playlist FRM

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From playlist Number: Percentages

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From playlist BEM1105x Course - Prof. Jakša Cvitanić

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From playlist Get Started with Actor Critic and Policy Gradient Methods

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From playlist Finance: Annuities and Loans

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Related pages

Expected shortfall | Risk measure | Probability space | Coherent risk measure | Order statistic | Present value | Interest rate