这个position limit跟capital limit的区别是什么

问题如下：

Hextall asks Klink to review the constraints used in the context of measuring the risk of the corporate banking division. Klink responds by stating that the corporate banking division’s capital allocation is $2,800 million. This amount considers market risk, credit risk, and operational risk for which the minimum required return is 11%.Capital limits, position limits, and stop-loss limits are assigned to manage both overall exposure and exposure to single-name event risk. The market risk management constraints for each of the corporate banking division’s lending groups are summarized in Exhibit 1.

With respect to capital allocation, which lending group listed in Exhibit 1 is least likely attractive?

选项：

A.

Secured

B.

Cash Flow

C.

Real Estate

解释：

B is correct. From a capital allocation perspective, the Cash Flow lending group is least attractive because its 10% rate of return is below the 11% minimum return (hurdle rate)required for the corporate banking division. The hurdle rate is being used as a risk measure since the $3,000 million aggregate amount of economic capital currently being consumed by the three lending groups exceeds the $2,800 million regulatory amount established for corporate banking. The rate of return is calculated as Portfolio return/Economic capital. The calculation for the Cash Flow group is $120 million/$1,200 million = 10%.

A is incorrect. The Secured lending group is not least attractive, because its 15% rate of return ($120 million/$800 million) exceeds the 11% hurdle rate.

C is incorrect. The Real Estate lending group is not least attractive, because its 12%rate of return ($120 million/$1,000 million) exceeds the 11% hurdle rate.