8011 TOP QUESTIONS | VALID 8011 TEST REGISTRATION

8011 Top Questions | Valid 8011 Test Registration

8011 Top Questions | Valid 8011 Test Registration

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Tags: 8011 Top Questions, Valid 8011 Test Registration, Exam 8011 Dump, 8011 Reliable Exam Simulations, 8011 Valid Exam Dumps

PRMIA 8011 certifications are thought to be the best way to get good jobs in the high-demanding market. There is a large range of 8011 certifications that can help you improve your professional worth and make your dreams come true. Our PRMIA 8011 Certification Practice materials provide you with a wonderful opportunity to get your dream certification with confidence and ensure your success by your first attempt.

PRMIA 8011 exam is a rigorous test of a candidate’s knowledge and skills in credit and counterparty risk management. 8011 exam consists of multiple-choice questions and is designed to test a candidate’s understanding of the key concepts and principles covered in the CCRM certification program. Candidates are required to demonstrate their ability to apply these concepts and principles to real-world scenarios.

PRMIA 8011 CCRM certification exam covers a wide range of topics, including credit risk management principles, quantitative methods for credit risk analysis, credit risk modeling, counterparty risk management, and financial derivatives. It is a comprehensive exam that requires a deep understanding of finance, risk management, and regulatory frameworks. Passing 8011 exam demonstrates a candidate's expertise in credit and counterparty risk management and their ability to apply sound risk management principles to complex financial instruments. With this certification, professionals can advance their careers as credit risk managers, financial analysts, or consultants in the financial sector.

PRMIA 8011 Certification is designed to provide professionals with a comprehensive understanding of credit risk management. Credit and Counterparty Manager (CCRM) Certificate Exam certification is recognized globally and is highly regarded in the finance industry. 8011 course is delivered through a combination of online learning and classroom-based instruction, and participants are required to pass an exam to achieve certification. 8011 course is an excellent way for professionals to enhance their skills and knowledge and to demonstrate their expertise in credit risk management.

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Valid 8011 Test Registration | Exam 8011 Dump

It can be difficult to prepare for the PRMIA 8011 exam successfully, but with actual and updated Credit and Counterparty Manager (CCRM) Certificate Exam (8011) exam questions, it can be much simpler. The difference between successful and failed 8011 Certification Exam attempts can be determined by studying with real 8011 exam questions.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q217-Q222):

NEW QUESTION # 217
If # and # are the expected rate of return and volatility of an asset whose prices are log-normally distributed, and # a random drawing from a standard normal distribution, we can simulate the asset's returns using the expressions:

  • A. # + #.#
  • B. # - #.#
  • C. -# + #.#
  • D. # / #.#

Answer: A

Explanation:
A standard model for representing asset returns in finance is the Geometric Brownian Motion process, and returns according to this model can be estimated by the expression given in Choice 'b'. Note that prices according to this model are log-normally distributed, and returns are normally distributed.


NEW QUESTION # 218
When fitting a distribution in excess of a threshold as part of the body-tail distribution method described by the equation below, how is the parameter 'p' calculated.

Here, F(x) is the severity distribution. F(Tail) and F(Body) are the parametric distributions selected for the tail and the body, and T is the threshold in excess of which the tail is considered to begin.

  • A. p is a function of the reporting threshold and determined by the log-likelihood functional
  • B. p is a parameter estimated using either the sum of least squares or maximum likelihood estimation
  • C. If there are K observations up to the tail threshold, then p = k*n
  • D. If there are N observations, of which K are up to T, then p = k/N

Answer: D

Explanation:
p = k/N. If there are N observations of which K are upto T, then p = k/N allows us to have a continuous unbroken curve which gets increasingly weighted towards the distribution selected for the tail as we move towards the 'right', ie the higher values of losses.
The other choices are incorrect and mostly nonsensical.


NEW QUESTION # 219
For an option position with a delta of 0.3, calculate VaR if the VaR of the underlying is $100.

  • A. 33.33
  • B. 0
  • C. 1
  • D. 2

Answer: D

Explanation:
The first order approximation of the VaR of an option position is nothing but the VaR of the underlying multiplied by the option's delta. This is intuitive because the delta is the sensitivity of the option price to changes in the prices of the underlying, and in this case since the delta is 0.3 and the underlying's VaR is
$100, the VaR of the options position is 0.3 x $100 = $30. Therefore Choice 'c' is the correct answer.
(Note that the second order approximation of the VaR of an options position considers the option gamma too, and VaR reduces if gamma increases.)


NEW QUESTION # 220
When compared to a medium severity medium frequency risk, the operational risk capital requirement for a high severity very low frequency risk is likely to be:

  • A. Higher
  • B. Unaffected by differences in frequency or severity
  • C. Zero
  • D. Lower

Answer: C

Explanation:
High frequency and low severity risks, for example the risks of fraud losses for a credit card issuer, may have high expected losses, but low unexpected losses. In other words, we can generally expect these losses to stay within a small expected and known range. The capital requirement will be the worst case losses at a given confidence level less expected losses, and in such cases this can be expected to be low.
On the other hand, medium severity medium frequency risks, such as the risks of unexpected legal claims, 'fat- finger' trading errors, will have low expected losses but a high level of unexpected losses. Thus the capital requirement for such risks will be high.
It is also worthwhile mentioning high severity and low frequency risks - for example a rogue trader circumventing all controls and bringing the bank down, or a terrorist strike or natural disaster creating other losses - will probably have zero expected losses & high unexpected losses but only at very high levels of confidence. In other words, operational risk capital is unlikely to provide for such events and these would lie in the part of the tail that is not covered by most levels of confidence when calculating operational risk capital.
Note that risk capital is required for only unexpected losses as expected losses are to be borne by P&L reserves. Therefore the operational risk capital requirements for a low severity high frequency risk is likely to be low when compared to other risks that are lower frequency but higher severity.
Thus Choice 'c' is the correct answer.


NEW QUESTION # 221
What does a middle office do for a trading desk?

  • A. Transaction data entry
  • B. Operations
  • C. Reconciliations
  • D. Risk analysis

Answer: D

Explanation:
The 'middle office' is a term used for the risk management function, therefore Choice 'd' is the correct answers. The other functions describe what the 'back office' does (IT, accounting). The 'front office' includes the traders.


NEW QUESTION # 222
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