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PRMIA Exam 8010 Topic 1 Question 29 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 29
Topic #: 1
[All 8010 Questions]

Loss provisioning is intended to cover:

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Suggested Answer: D

The change in the price of a security that follows a Weiner process is determined by its standard deviation and expected return. To get the price itself, we need to add this change in price to the current price. Therefore the future price in a Weiner process is determined by all three of current price, expected return and standard deviation.


by Glendora at Apr 22, 2023, 11:41 PM

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Clement
2 months ago
Ha! Expected losses, unexpected losses, who can keep track? As long as the bank has enough to cover their bases, that's all that matters, right?
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Lonna
28 days ago
D) Expected losses
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Yoko
1 months ago
C) Both expected and unexpected losses
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Sonia
1 months ago
B) Losses in excess of unexpected losses
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Lili
2 months ago
A) Unexpected losses
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Rozella
2 months ago
Definitely C. Loss provisioning is a way for banks and financial institutions to prepare for potential losses, both the ones they can anticipate and the ones that might catch them by surprise.
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Alfred
22 days ago
It's a smart way for banks to manage their risks and ensure they have enough funds set aside for any potential losses.
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Glory
25 days ago
I think it's crucial for financial institutions to be prepared for any kind of losses, whether expected or unexpected.
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Launa
1 months ago
I agree, loss provisioning is important to cover both expected and unexpected losses.
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Noble
2 months ago
Hmm, I'm not sure about this one. I know loss provisioning is important, but I'm not super clear on the nuances. I guess I'll have to review my notes more carefully.
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Leslie
2 months ago
C) Both expected and unexpected losses
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Rochell
2 months ago
B) Losses in excess of unexpected losses
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Raul
2 months ago
A) Unexpected losses
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Sueann
3 months ago
I think the answer is C. Loss provisioning is meant to cover both expected and unexpected losses, not just one or the other.
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Laticia
2 months ago
That makes sense. It's important for companies to be prepared for any potential losses that may occur.
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Mica
2 months ago
Yes, you're right. Loss provisioning is designed to cover both expected and unexpected losses to ensure financial stability.
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Kattie
2 months ago
I think the answer is C. Loss provisioning is meant to cover both expected and unexpected losses, not just one or the other.
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Galen
3 months ago
I think it could also cover losses in excess of unexpected losses, just to be safe.
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Kanisha
3 months ago
I agree with Raina. It makes sense to have a buffer for unexpected losses.
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Raina
4 months ago
I think loss provisioning is intended to cover unexpected losses.
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