To evaluate BetaBank's exposure to the Japanese economy, we should consider measures that reflect the bank's positions and their potential sensitivity to economic changes in Japan:
* Position Turnover:
* This measures how frequently positions are changed or traded, which does not directly indicate exposure to economic conditions.
* Position Concentrations:
* This indicates how concentrated the bank's positions are in certain assets or markets. High concentration in Japanese assets (yen, Japanese government bonds, etc.) would indicate high exposure to the Japanese economy.
* Position Volatility:
* This measures how much the value of positions fluctuates, which can indicate risk but does not specifically measure economic exposure.
* Position Sensitivities:
* This measures how sensitive positions are to changes in underlying factors, such as interest rates or exchange rates. This could also be relevant but does not directly indicate exposure to the economy as a whole.
Thus, position concentrations are a key measure to evaluate BetaBank's exposure to the Japanese economy.
ReferencesSource: How Finance Works