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Methodological approaches for conducting an operational cost analysis of banks' interest-bearing assets have been developed in the research. The correlation between the components of banking products price and the profitability (loss) of Ukrainian banks has been determined. The Ukrainian banks have been grouped according to the level of return on the shareholders’ equity. They have been divided into planes according to the share in the credit market and the share of profit in the price. The analysis shows that the most profitable banks have a high capital multiplier and a high level of non-interest income that is not exposed to credit risk. On this basis, depending on the share in the credit market and the share of profit in the price, the recommendations for target pricing strategies have been justified, taking into account the risk-weighted return on equity ratio. [ABSTRACT FROM AUTHOR]

In this paper, a modified Black–Scholes (B–S) model is proposed, based on a revised assumption that the range of the underlying price varies within a finite zone, rather than being allowed to vary in a semi-infinite zone as presented in the classical B–S theory. This is motivated by the fact that the underlying price of any option can never reach infinity in reality; a trader may use our new formula to adjust the option price that he/she is willing to long or short. To develop this modified option pricing formula, we assume that a trader has a view on the realistic price range of a particular asset and the log-returns follow a truncated normal distribution within this price range. After a closed-form pricing formula for European call options has been successfully derived, some numerical experiments are conducted. To further demonstrate the meaning of the proposed model, empirical studies are carried out to compare the pricing performance of our model and that of the B–S model with real market data. [ABSTRACT FROM AUTHOR]

An increasingly important role is played by small and medium enterprises (SMEs) in our economy, so in order to broaden the market and seek more stable returns on the investments, commercial banks are bound to regard the SMEs' credit market as an importantly developing area. Bank is a special enterprise operating currency businesses, so it must be faced with various types of risks, particularly credit risk. Combined with unique characteristics of SMEs, the credit risk of SMEs is more difficult to control. There is no doubt that to enhance the credit risk management of SMEs will not only affect the banks' business performance and competitiveness, but also be related to the security of bank assets. In this paper, we investigate the multiple attribute decision making problems with picture fuzzy information. Then, we utilize induced OWG (IOWG) operator to develop picture fuzzy induced OWG (PFIOWG) operators. The prominent characteristic of this proposed operator are studied. And, we have utilized the PFIOWG to solve the picture fuzzy multiple attribute decision making problems. Finally, a practical example for evaluating the enterprise risk management is given. [ABSTRACT FROM AUTHOR]

Studies investigating the relation between risk and return occupy an important place in the discussion about the effectiveness of investing in real estate. A review of the available studies shows that real estate investments are less profitable than stocks, but in terms of risk and return, are usually the best option. This worldwide regularity may not necessarily be presented in Poland, as the Polish market is not fully fledged yet. The analysis presented in this article was performed with a view to reducing a research gap resulting from the lack of comprehensive Polish studies in this field. In the article, data spanning the years from 2006 to 2016 are examined by means of descriptive statistics, measures of risk, and the analysis of variance (ANOVA) to determine which of the following investment vehicles - bonds, real estate or stocks - offer the best risk-return ratio. The article has two parts. The analytical part is a review of studies on risk measurement methods and of earlier studies investigating risk and return by a class of assets (particularly real estate). In the empirical part, assets are compared with the use of statistical methods. The results of the risk-return analysis point to the money market as the best option for investors. Stocks and real estate ranked second and third, respectively. [ABSTRACT FROM AUTHOR]