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NACVA CVA Exam - Topic 2 Question 59 Discussion

_____________________ 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.
D) Investment-specific risk
A) Unsystematic risk
B) Systematic risk
C) Equity-risk premium

NACVA CVA Exam - 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.

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Suggested Answer: D

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

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Merissa
7 months ago
Systematic risk is linked to the overall market, for sure!
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Peggie
7 months ago
Wait, are we sure it's not investment-specific risk?
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Demetra
8 months ago
Totally agree, it's all about market movements.
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Whitley
8 months ago
I thought it was unsystematic risk at first.
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Cassi
8 months ago
That's definitely systematic risk!
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Carlton
8 months ago
I practiced a question similar to this, and I think systematic risk was the correct answer there too.
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Matthew
8 months ago
I feel like unsystematic risk is more about individual investments, but I could be mixing them up.
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Bobbye
8 months ago
I remember studying that systematic risk is tied to the overall market, so I’m leaning towards option B.
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Jacki
8 months ago
I think this might be systematic risk since it relates to market movements, but I'm not entirely sure.
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Theresia
8 months ago
Okay, I've got this. As a Service Desk Manager, one of your key obligations is to align the Service Desk's goals with the overall goals of the organization. That's the option that stands out to me as the most relevant and important responsibility.
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Emogene
8 months ago
I remember similar questions where they emphasized the importance of partnerships, so option D might be a good pick since it talks about appearing larger with suppliers and couriers.
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Zona
9 months ago
Okay, I've got this. The key is to use Azure Security Center and Azure Logic Apps to set up the automated response to the suspicious IP access. I'll select the relevant options and move on to the next question.
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Lazaro
1 year 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
1 year ago
I agree with you, C) Equity-risk premium sounds good to me.
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Reena
1 year ago
I would go with A) Unsystematic risk.
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Sean
1 year ago
I think it's B) Systematic risk.
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Emile
1 year 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
12 months ago
Nichelle: Maybe we should review the definitions again to be sure.
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Juan
12 months ago
User 3: I'm pretty sure it's A) Unsystematic risk.
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Nichelle
12 months ago
User 2: I'm leaning towards D) Investment-specific risk.
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Rochell
12 months ago
User 1: I think it's B) Systematic risk.
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Luther
1 year ago
Elbert: Let's double-check the definition just to be sure.
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Keshia
1 year ago
User 3: I'm pretty sure it's A) Unsystematic risk.
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Elbert
1 year ago
User 2: I'm leaning towards D) Investment-specific risk.
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Wava
1 year ago
User 1: I think it's B) Systematic risk.
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Stephen
1 year 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
1 year ago
Yeah, systematic risk is the uncertainty of future returns based on market movements.
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Haley
1 year ago
I agree, it's definitely B) Systematic risk.
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Christoper
1 year 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
1 year ago
I remember studying this, and I'm pretty sure it's D) Investment-specific risk.
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Celestina
1 year ago
I'm not sure either, but I think it might be C) Equity-risk premium.
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Lonna
1 year ago
I believe it's A) Unsystematic risk.
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Francine
1 year ago
I think it's B) Systematic risk.
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Hortencia
1 year ago
I'm not sure, but I think it might be A) Unsystematic risk.
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Mila
1 year 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
1 year ago
I agree with Shannan, systematic risk makes sense in this context.
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Shannan
1 year ago
I think the answer is B) Systematic risk.
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