NACVA Exam CVA Topic 2 Question 59 Discussion

Actual exam question for NACVA's CVA exam

Question #: 59
Topic #: 2

[All CVA Questions]

_____________________ is the uncertainty of future returns resulting from the sensitivity of the return on the subject investment to movements in the return on the investment market as a whole.

AUnsystematic risk

BSystematic risk

CEquity-risk premium

DInvestment-specific risk

Show Suggested Answer

Suggested Answer: D

by Chanel at Oct 27, 2022, 11:03 PM

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Lazaro

4 months ago

If this was a multiple-choice question in the real exam, I'd probably just close my eyes and pick an answer. Might as well go with C) Equity-risk premium, it's got a nice ring to it!

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Ty

3 months ago

I agree with you, C) Equity-risk premium sounds good to me.

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Reena

3 months ago

I would go with A) Unsystematic risk.

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Sean

3 months ago

I think it's B) Systematic risk.

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Emile

4 months ago

Wait, is this a trick question? I was convinced it was A) Unsystematic risk, but now I'm doubting myself. Curse these certification exams and their tricky wording!

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Jesusa

2 months ago

Nichelle: Maybe we should review the definitions again to be sure.

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Juan

2 months ago

User 3: I'm pretty sure it's A) Unsystematic risk.

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Nichelle

2 months ago

User 2: I'm leaning towards D) Investment-specific risk.

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Rochell

2 months ago

User 1: I think it's B) Systematic risk.

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Luther

2 months ago

Elbert: Let's double-check the definition just to be sure.

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Keshia

3 months ago

User 3: I'm pretty sure it's A) Unsystematic risk.

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Elbert

3 months ago

User 2: I'm leaning towards D) Investment-specific risk.

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Wava

4 months ago

User 1: I think it's B) Systematic risk.

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Stephen

4 months ago

Haha, I know this one! It's definitely B) Systematic risk. I can practically hear my finance professor's voice in my head explaining this concept.

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Mozell

3 months ago

Yeah, systematic risk is the uncertainty of future returns based on market movements.

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Haley

3 months ago

I agree, it's definitely B) Systematic risk.

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Christoper

4 months ago

Hmm, I'm not sure about this one. I was leaning towards D) Investment-specific risk, but now I'm second-guessing myself. Guess I'll have to review my notes on risk types.

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Jesse

3 months ago

I remember studying this, and I'm pretty sure it's D) Investment-specific risk.

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Celestina

3 months ago

I'm not sure either, but I think it might be C) Equity-risk premium.

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Lonna

4 months ago

I believe it's A) Unsystematic risk.

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Francine

4 months ago

I think it's B) Systematic risk.

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Hortencia

4 months ago

I'm not sure, but I think it might be A) Unsystematic risk.

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Mila

4 months ago

I think the answer is B) Systematic risk. This sounds like the definition of market risk, which is the risk that the entire market will move up or down, affecting the investment's returns.

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Eden

4 months ago

I agree with Shannan, systematic risk makes sense in this context.

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Shannan

4 months ago

I think the answer is B) Systematic risk.

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