<div>
Thibault,<br />
<br />
Thank you for providing your thoughts. It is certainly a good starting point.<br />
<br />
Thank you,
</div>


Thibault,

Thank you for providing your thoughts. It is certainly a good starting point.

Thank you,

<div>
<div class="content wysiwyg-content">
Dear experts,<br />
<br />
I have included the Article (section or regulatory requirements) for calculating the CVA. This formula is provided by Basel and has been adopted by the EBA.<br />
<br />
I need help in trying to understand the mathematical operation for arriving at the CVA.<br />
<br />
While I am aware that that my question is vague. I will appreciate if anyone can start at a high level in providing the following information:<br />
1. What does the formulae achieve by calculating the square root of a portion of the value which is a <u>square of sum of the <u>individual </u>values (A)</u> and the other section being the <u>sum of the squares of the individual values (B)</u>.<br />
<br />
Thank you<br />
<a href="https://filedb.experts-exchange.com/incoming/2016/05_w23/1099907/CVA-question.docx" target="_blank" class="file-inline" title="Credit Valuation Adjustment (CVA) (1.4 MB)"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 512 512"><path d="M67.508 468.467c-58.005-58.013-58.016-151.92 0-209.943l225.011-225.04c44.643-44.645 117.279-44.645 161.92 0 44.743 44.749 44.753 117.186 0 161.944l-189.465 189.49c-31.41 31.413-82.518 31.412-113.926.001-31.479-31.482-31.49-82.453 0-113.944L311.51 110.491c4.687-4.687 12.286-4.687 16.972 0l16.967 16.971c4.685 4.686 4.685 12.283 0 16.969L184.983 304.917c-12.724 12.724-12.73 33.328 0 46.058 12.696 12.697 33.356 12.699 46.054-.001l189.465-189.489c25.987-25.989 25.994-68.06.001-94.056-25.931-25.934-68.119-25.932-94.049 0l-225.01 225.039c-39.249 39.252-39.258 102.795-.001 142.057 39.285 39.29 102.885 39.287 142.162-.028A739446.174 739446.174 0 0 1 439.497 238.49c4.686-4.687 12.282-4.684 16.969.004l16.967 16.971c4.685 4.686 4.689 12.279.004 16.965a755654.128 755654.128 0 0 0-195.881 195.996c-58.034 58.092-152.004 58.093-210.048.041z"/></svg>CVA-question.docx</a>
</div>
</div>


CVA-question.docx

Dear experts,

I have included the Article (section or regulatory requirements) for calculating the CVA. This formula is provided by Basel and has been adopted by the EBA.

I need help in trying to understand the mathematical operation for arriving at the CVA.

While I am aware that that my question is vague. I will appreciate if anyone can start at a high level in providing the following information:
1. What does the formulae achieve by calculating the square root of a portion of the value which is a square of sum of the individual values (A) and the other section being the sum of the squares of the individual values (B).

Thank you

Credit Valuation Adjustment (CVA)

The Math / Science topic primarily includes discussions of mathematics, physics, statistics and economic analysis, but also biology, chemistry and other sciences.

Math / Science

Puzzles and riddles are statements and questions framed such that they require ingenuity and imagination to resolve. Most are mathematical conundrums, but can also include the arcane, trivial or simply funny.

Puzzles / Riddles

A miscellany is defined as a "collection of various pieces of writing by different authors", but it has come to mean something "Of items gathered or considered together of various types or from different sources" or "a collection or group composed of members or elements of different kinds". The word "miscellaneous" comes from the Latin word "miscere", meaning "to mix." You might have heard the expression "a mixed bag," which applies when you don't quite know what you're going to get. More commonly, a miscellaneous group is made up of an odd group of things that don't fit anywhere else.