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Errors Found in Study Materials P2.T7. Operational & Integrated Risk

R67-P2-T7-Hull, p18 (Study Notes)


Technically we shouldn't take the average of the gross income since only positive gross income are taken into account. If the gross income is negative in year 1 for example, we will only average the two other years.

Reference: Hull (Risk Management and Financial Institutions)
"Years where gross income is negative are not included in the calculations"