wake2000

BTON04 Wrote:
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> hellscream
>
> to your original statement "I thought stress test
> is to include the simultaneous adverse movements
> of multiple risk factors????", I believe this
> implies the fact that stress test fail to
> recognize correlations that exists between the
> factors that are being "stressed". So even
> though stress test may be run with multiple
> factors, the specifications are generally of the
> nature +10/-10% moves in interest rates, +10/-10%
> moves in equity prices without accounting for the
> correlations that exist between equity prices and
> interest rates.


I am convinced! cheers