Lecture 10 - Current Events

Question 1

AI & Operational Risk

Answer 1

AI examines volumes of data to find irregularities and potential fraud

Question 2

AI & Market Risk

Answer 2

AI uses algorithms to forecast market movements and spot trends that human research might miss

Question 3

AI & Liquidity risk

Answer 3

AI techniques evaluate an asset’s liquidity within a portfolio and forecast potential liquidity problems

Question 4

AI & Credit Risk

Answer 4

AI algo’s assess the creditworthiness of a potential investment or borrower by analyzing financial data and credit histories

Question 5

AI & Factor Investment Analysis

Answer 5

Assists in identifying and evaluating investment criteria like value, size, momentum, quality or volatility

Question 6

AI & Portfolio Optimization

Answer 6

Ai used advanced algos to balance risk and return, optimizing portfolio for better risk-adjusted returns

Question 7

AI & Fundamental Analysis

Answer 7

AI organizes textual research from economic reports and annual reports, aiding in data-driven decision-making.

Question 8

AI & Behavioral Patterns

Answer 8

AI studies investor behavior pattern