Risk Management Practices 8008 Valid Questions


PRM Certification – Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP-2015 Edition 8008 exam is one related test for PRM certification. We have cracked the latest Risk Management Practices 8008 valid questions, which are valuable for you to pass the test. PRM certification 8008 exam tests your knowledge and understanding of the modern risk management theory and practices. 8008 exam tests the following 6 parts:

Risk Management Frameworks
Operational Risk
Credit Risk
Counterparty Credit Risk
Market Risk
Asset Liability Management and Funds Transfer Pricing

The new cracked Risk Management Practices 8008 valid questions are the best study guides. Share some free Risk Management Practices 8008 valid questions below.

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1. Which of the following statements is true:

2. Which of the following is the best description of the spread premium puzzle:

3. Which of the following are true:

I. The total of the component VaRs for all components of a portfolio equals the portfolio VaR.

II. The total of the incremental VaRs for each position in a portfolio equals the portfolio VaR.

III. Marginal VaR and incremental VaR are identical for a $1 change in the portfolio.

IV. The VaR for individual components of a portfolio is sub-additive, ie the portfolio VaR is less than (or in extreme cases equal to) the sum of the individual VaRs.

V. The component VaR for individual components of a portfolio is sub-additive, ie the portfolio VaR is less than the sum of the individual component VaRs.

4. A risk analyst analyzing the positions for a proprietary trading desk determines that the combined annual variance of the desk's positions is 0.16. The value of the portfolio is $240m.

What is the 10-day stand alone VaR in dollars for the desk at a confidence level of 95%? Assume 250 trading days in a year.

5. Which of the following contributed to the systemic failure during the credit crisis that began in 2007?

6. As the persistence parameter under GARCH is lowered, which of the following would be true:

7. Which of the following formulae describes CVA (Credit Valuation Adjustment)? All acronyms have their usual meanings (LGD=Loss Given Default, ENE=Expected Negative Exposure, EE=Expected Exposure, PD=Probability of Default, EPE=Expected Positive Exposure, PFE=Potential Future Exposure)

8. The risk that a counterparty fails to deliver its obligation upon settlement while having received the leg owed to it is called:

9. The returns for a stock have a monthly volatilty of 5%. Calculate the volatility of the stock over a two month period, assuming returns between months have an autocorrelation of 0.3.

10. An error by a third party service provider results in a loss to a client that the bank has to make up. Such as loss would be categorized per Basel II operational risk categories as:


 

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