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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?

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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

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Catalina
10 days ago
The contingent claims approach? More like the 'contingent on me passing this exam' approach!
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Luisa
18 days ago
KMV's EDF based approach? That's like the Michael Keaton of credit risk models - good, but not the best.
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Cristy
27 days ago
The actuarial approach? Sounds like something my grandpa would use. This is the 21st century, folks!
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Romana
2 days ago
B) The CreditMetrics approach
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Alpha
9 days ago
A) KMV's EDF based approach
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Hortencia
1 months ago
Oh man, I was totally confused between the CreditMetrics and the contingent claims approach. Gotta study up on those credit risk models!
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Bobbye
1 months ago
I'm not sure, but I think CreditMetrics approach also considers credit rating migrations.
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Colby
1 months ago
I agree with Mica, KMV's EDF based approach analyzes credit rating migrations.
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Benedict
1 months ago
The CreditMetrics approach sounds like the right answer here. It's all about analyzing credit rating migrations to assess credit risk.
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Estrella
1 days ago
The actuarial approach may not rely heavily on credit rating migrations.
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Marisha
2 days ago
I think KMV's EDF based approach also considers credit rating migrations.
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Ashton
15 days ago
I agree, the CreditMetrics approach is focused on credit rating migrations.
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Mica
1 months ago
I think the answer is A) KMV's EDF based approach.
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a