How much of Washington Mutual's assets were funded by customer deposits for the decade ending in 2006?

Suppose we perform a principle component analysis of the correlation matrix of the returns of 13 yields along the yield curve. The largest eigenvalue of the correlation matrix is 9.8. What percentage of return volatility is explained by the first component? (You may use the fact that the sum of the diagonal elements of a square matrix is always equal to the sum of its eigenvalues.)

The standalone economic capital estimates for the three business units of a bank are $100, $200 and $150 respectively. What is the combined economic capital for the bank, assuming the risks of the three business units are perfectly correlated?

The first derivative of a function f(x) is zero at some point, the second derivative is also zero at this point. This means that:

An operational risk analyst models the occurrence of computer failures as a Poisson process with an arrival rate of 2 events per year. According to this model, what is the probability of zero failures in one year?

The sum of the stand alone economic capital of all the business units of a bank is:

Backwardation can happen in markets where

A bond has modified duration 6 and convexity 30. Find the duration-convexity approximation to the percentage change in bond price when its yield increases by 5 basis points

[According to the PRMIA study guide for Exam 1, Simple Exotics and Convertible Bonds have been excluded from the syllabus. You may choose to ignore this question. It appears here solely because the Handbook continues to have these chapters.]

The price of an 'out-of-the-money' convertible security is affected by:

I. Changes in interest rates

II. Changes in the issuer's credit risk

III. Changes in the issuer's share price

IV. Changes in the implied volatility of the issuer's share price

What is the maximum value for f(x)= 8-(x+3)(x-3)?