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AIWMI CCRA-L2 Exam - Topic 2 Question 98 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 98
Topic #: 2

[All CCRA-L2 Questions]

Basket Default swaps could be

Areference sectors could be from the same economy

Breference sectors could be the entire global space

Creference securities are from the same sector

Show Suggested Answer

Suggested Answer: C

by Talia at Sep 13, 2024, 08:46 PM

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Dorethea

7 months ago

Totally agree with A, it keeps things more manageable.

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Gladys

7 months ago

Wait, can they really be from the entire global space? That sounds risky!

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Fannie

7 months ago

C seems off, reference securities should be more specific.

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Coleen

7 months ago

I think B is also valid, global sectors make sense too.

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Avery

8 months ago

A is correct, sectors can be from the same economy.

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Luis

8 months ago

I’m a bit confused about the global aspect; I thought basket default swaps were usually limited to a specific economy, but maybe they can be broader?

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Una

8 months ago

I feel like we practiced a question similar to this, and it mentioned that reference sectors should ideally be from the same sector to reduce risk.

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Mable

8 months ago

I remember studying that basket default swaps can reference multiple sectors, but I can't recall if they can be global or just from one economy.

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Sang

8 months ago

I think basket default swaps can have reference securities from the same sector, but I'm not entirely sure if they can also include different sectors from the same economy.

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Ruth

8 months ago

I remember discussing basket default swaps in class. I believe the correct answer is that the reference sectors could be the entire global space.

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Ellen

8 months ago

I'm not sure about this one. I'll have to guess and hope for the best.

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Felton

8 months ago

Hmm, I'm not too familiar with basket default swaps. I'll have to review my notes on that topic.

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Jacklyn

8 months ago

This question seems a bit tricky. I'll need to think it through carefully.

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Henriette

9 months ago

Okay, I think I know the answer to this one. The reference sectors could be from the same economy.

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Shawana

2 years ago

Hmm, I'm feeling C. Keeping it all in the same sector just makes sense to me.

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Samira

2 years ago

B all the way! Diversifying across the global space is where it's at.

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Kayleigh

2 years ago

C) reference securities are from the same sector

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Ilona

2 years ago

B) reference sectors could be the entire global space

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Christiane

2 years ago

A) reference sectors could be from the same economy

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Delila

2 years ago

But wouldn't it make more sense for reference securities to be from the same sector?

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Carylon

2 years ago

I disagree, I believe reference sectors could be the entire global space.

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Arlette

2 years ago

A and C seem like the most logical options. I'm gonna go with A - reference sectors from the same economy.

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Alisha

2 years ago

Yeah, A and C both make sense, but I think A is the safer choice.

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Yvonne

2 years ago

I'm leaning towards A as well, sticking with reference sectors from the same economy.

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Glen

2 years ago

I think C could also work, as reference securities from the same sector could make sense.

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Leonie

2 years ago

I agree, A does seem like a logical choice.

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Delila

2 years ago

I think Basket Default swaps could be from the same economy.

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