Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location
Mob_nav_barsMENU

PRMIA Exam 8010 Topic 8 Question 65 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 65
Topic #: 8
[All 8010 Questions]

Which of the following credit risk models relies upon the analysis of credit rating migrations to assess credit risk?

Show Suggested Answer Hide Answer
Suggested Answer: C

For EVT, we use the block maxima or the peaks-over-threshold methods. These provide us the data points that can be fitted to a GEV distribution.

Least squares and maximum likelihood are methods that are used for curve fitting, and they have a variety of applications across risk management.


by Mireya at Jan 09, 2025, 05:49 PM

Limited Time Offer

25%

Off

Get Premium 8010 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Mariko
2 days ago
I thought it was KMV's EDF method?
upvoted 0 times
...
Junita
8 days ago
It's definitely the CreditMetrics approach!
upvoted 0 times
...
Katina
13 days ago
I have a vague memory that the contingent claims approach might involve some migration analysis, but I really need to double-check that.
upvoted 0 times
...
Kerry
19 days ago
The actuarial approach sounds familiar, but I can't recall if it specifically deals with credit rating changes.
upvoted 0 times
...
Raul
24 days ago
I remember practicing a question similar to this, and I feel like the KMV model was more about default probabilities rather than migrations.
upvoted 0 times
...
Ming
1 month ago
I think the CreditMetrics approach is the one that focuses on credit rating migrations, but I'm not entirely sure.
upvoted 0 times
...
Maybelle
1 month ago
Based on my understanding, the CreditMetrics approach is the one that focuses on credit rating migrations, so I'll go with that.
upvoted 0 times
...
Anabel
1 month ago
I'm a little confused by the wording of this question. Let me think through the key features of each model to determine the right answer.
upvoted 0 times
...
Glory
1 month ago
The CreditMetrics approach sounds familiar, I'm pretty confident that's the one that uses credit rating migrations to assess risk.
upvoted 0 times
...
Alesia
1 month ago
Hmm, I'm a bit unsure about this one. I'll need to review my notes on the different credit risk models to make sure I pick the right one.
upvoted 0 times
...
Howard
1 month ago
This question seems straightforward, I think the CreditMetrics approach is the one that relies on credit rating migrations.
upvoted 0 times
...
Catalina
6 months ago
The contingent claims approach? More like the 'contingent on me passing this exam' approach!
upvoted 0 times
Denny
5 months ago
I know, right? Let's hope we both pass!
upvoted 0 times
...
Odette
5 months ago
Haha, good one!
upvoted 0 times
...
Sanjuana
5 months ago
D) The contingent claims approach
upvoted 0 times
...
Lashon
5 months ago
C) The actuarial approach
upvoted 0 times
...
Kirk
6 months ago
B) The CreditMetrics approach
upvoted 0 times
...
Mickie
6 months ago
A) KMV's EDF based approach
upvoted 0 times
...
...
Luisa
6 months ago
KMV's EDF based approach? That's like the Michael Keaton of credit risk models - good, but not the best.
upvoted 0 times
Meghann
5 months ago
D) The contingent claims approach
upvoted 0 times
...
Lynelle
5 months ago
C) The actuarial approach
upvoted 0 times
...
Santos
5 months ago
B) The CreditMetrics approach
upvoted 0 times
...
Bo
6 months ago
A) KMV's EDF based approach
upvoted 0 times
...
...
Cristy
7 months ago
The actuarial approach? Sounds like something my grandpa would use. This is the 21st century, folks!
upvoted 0 times
Carol
5 months ago
User 4: The CreditMetrics approach is also a good option.
upvoted 0 times
...
Estrella
5 months ago
User 3: I prefer the KMV's EDF based approach.
upvoted 0 times
...
Ilona
5 months ago
User 2: I agree, we need more modern methods.
upvoted 0 times
...
Demetra
5 months ago
User 1: I think the actuarial approach is outdated.
upvoted 0 times
...
Romana
6 months ago
B) The CreditMetrics approach
upvoted 0 times
...
Alpha
6 months ago
A) KMV's EDF based approach
upvoted 0 times
...
...
Hortencia
7 months ago
Oh man, I was totally confused between the CreditMetrics and the contingent claims approach. Gotta study up on those credit risk models!
upvoted 0 times
...
Bobbye
7 months ago
I'm not sure, but I think CreditMetrics approach also considers credit rating migrations.
upvoted 0 times
...
Colby
7 months ago
I agree with Mica, KMV's EDF based approach analyzes credit rating migrations.
upvoted 0 times
...
Benedict
7 months ago
The CreditMetrics approach sounds like the right answer here. It's all about analyzing credit rating migrations to assess credit risk.
upvoted 0 times
Ahmed
6 months ago
The contingent claims approach is more focused on option pricing rather than credit rating migrations.
upvoted 0 times
...
Estrella
6 months ago
The actuarial approach may not rely heavily on credit rating migrations.
upvoted 0 times
...
Marisha
6 months ago
I think KMV's EDF based approach also considers credit rating migrations.
upvoted 0 times
...
Ashton
6 months ago
I agree, the CreditMetrics approach is focused on credit rating migrations.
upvoted 0 times
...
...
Mica
7 months ago
I think the answer is A) KMV's EDF based approach.
upvoted 0 times
...

Save Cancel