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Explain how total portfolio risk can be decomposed in various risk exposures and indicate why risk decomposition...

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Finance

Explain how total portfolio risk canbe decomposed in various risk exposures and indicate why riskdecomposition can be a complex exercise.

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Decomposition of Risk by Positions several systems vendors attempt to decompose risk either variance or standard deviation by the position typically this can beoften seemed to be intuitive for voltampere calculations at banks eg what quantity risk comes from every loan as a result of the choice is to not build the loan and that we area    See Answer
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Explain how total portfolio risk canbe decomposed in various risk exposures and indicate why riskdecomposition can be a complex exercise.

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