Last Update 12 hours ago Total Questions : 362
The PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition content is now fully updated, with all current exam questions added 12 hours ago. Deciding to include 8008 practice exam questions in your study plan goes far beyond basic test preparation.
You'll find that our 8008 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these 8008 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition practice test comfortably within the allotted time.
Which of the following are considered asset based credit enhancements?
I. Collateral
II. Credit default swaps
III. Close out netting arrangements
IV. Cash reserves
An assumption regarding the absence of ratings momentum is referred to as:
Which of the following are true:
I. Delta hedges need to be rebalanced frequently as deltas fluctuate with fluctuating prices.
II. Portfolio managers are right to focus on primary risks over secondary risks.
III. Increasing the hedge rebalance frequency reduces residual risks but increases transaction costs.
IV. Vega risk can be hedged using options.
Which of the following statements is the most appropriate description of feedback effects:
If EV be the expected value of a firm's assets in a year, and DP be the 'default point' per the KMV approach to credit risk, and σ be the standard deviation of future asset returns, then the distance-to-default is given by:
A)
B)
C)
D)
Which of the following formulae describes CVA (Credit Valuation Adjustment)? All acronyms have their usual meanings (LGD=Loss Given Default, ENE=Expected Negative Exposure, EE=Expected Exposure, PD=Probability of Default, EPE=Expected Positive Exposure, PFE=Potential Future Exposure)
If the default hazard rate for a company is 10%, and the spread on its bonds over the risk free rate is 800 bps, what is the expected recovery rate?