Deal of the Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Free Preparation Discussions
MENU
PRMIA Exam 8008 Topic 1 Question 6 Discussion
Actual exam question for
PRMIA's
Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP ? 2015 Edition exam
Question #: 6
Topic #: 1
[All Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP ? 2015 Edition Questions]
Topic #: 1
Which of the following are valid techniques used when performing stress testing based on hypothetical test scenarios:
I,Modifying the covariance matrix by changing asset correlations
II,Specifying hypothetical shocks
III,Sensitivity analysis based on changes in selected risk factors
IV. Evaluating systemic liquidity risks
Suggested Answer:
D
Each of these represent valid techniques for performing stress testing and building stress scenarios. Therefore d is the correct answer. In practice, elements of each of these techniques is used depending upon the portfolio and the exact situation.
Currently there are no comments in this discussion, be the first to comment!