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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
16 days 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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Rozella
24 days 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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Noble
25 days 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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Rochell
2 days ago
B) Losses in excess of unexpected losses
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Raul
16 days ago
A) Unexpected losses
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Sueann
1 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
3 days ago
That makes sense. It's important for companies to be prepared for any potential losses that may occur.
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Mica
21 days 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
27 days 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
2 months ago
I think it could also cover losses in excess of unexpected losses, just to be safe.
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Kanisha
2 months ago
I agree with Raina. It makes sense to have a buffer for unexpected losses.
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Raina
2 months ago
I think loss provisioning is intended to cover unexpected losses.
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