8011 Dumps Torrent: Credit and Counterparty Manager (CCRM) Certificate Exam & 8011 Exam Bootcamp
8011 Dumps Torrent: Credit and Counterparty Manager (CCRM) Certificate Exam & 8011 Exam Bootcamp
Blog Article
Tags: Latest 8011 Test Answers, Real 8011 Exams, 8011 Test Assessment, 8011 Exam Tutorials, Latest 8011 Test Cost
Our PRMIA 8011 demo products hold the demonstration for our actual products, demos are offered at no cost only for raising your confidence level. Procure the quality of our product in advance, unsighted featured becomes reveal with our 8011 Demo products. Free Private Cloud Monitoring and Operations with demos respond to all kind of worries that customers have in their mind while going for actual purchase.
PRMIA 8011 exam covers a range of topics related to credit and counterparty risk management, including credit risk measurement and management, counterparty risk management, credit derivatives, securitization, and credit portfolio management. 8011 exam is designed to test the candidate's understanding of the key concepts, principles, and practices of credit and counterparty risk management. The CCRM certificate is recognized globally and is highly valued by employers in the financial services industry. It is an excellent way for professionals to demonstrate their expertise and commitment to the field of credit and counterparty risk management.
PRMIA 8011 Exam covers a wide range of topics related to credit risk and counterparty risk management, including credit analysis, credit risk modeling, credit derivatives, counterparty risk management, and regulatory frameworks. 8011 exam is divided into two parts, with the first part consisting of multiple-choice questions and the second part consisting of case studies and essay questions. 8011 exam is designed to be challenging, and candidates are expected to have a solid understanding of the principles and practices of credit risk and counterparty risk management in order to pass.
>> Latest 8011 Test Answers <<
Real 8011 Exams - 8011 Test Assessment
We have hired professional staff to maintain 8011 practice engine and our team of experts also constantly updates and renew the question bank according to changes in the syllabus. With 8011 learning materials, you can study at ease, and we will help you solve all the problems that you may encounter in the learning process. If you have any confusion about our 8011 Exam Questions, just contact us and we will help you out.
PRMIA 8011: Credit and Counterparty Manager (CCRM) Certificate Exam is designed to test the knowledge and skills of professionals in credit and counterparty risk management. The test assesses the comprehension of the concepts and technical analysis involved in credit risk management and the application of that knowledge to real-life scenarios. 8011 Exam covers topics such as credit analysis techniques, credit risk models, risk quantification and measurement, asset quality assessment, portfolio optimization, and counterparty risk management.
PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q275-Q280):
NEW QUESTION # 275
What would be the consequences of a model of economic risk capital calculation that weighs all loans equally regardless of the credit rating of the counterparty?
I. Create an incentive to lend to the riskiest borrowers
II. Create an incentive to lend to the safest borrowers
III. Overstate economic capital requirements
IV. Understate economic capital requirements
- A. I and IV
- B. III only
- C. I only
- D. II and III
Answer: A
Explanation:
If capital calculations are done in a standard way regardless of risk (as reflected by credit ratings), then it creates a perverse incentive for the lenders' employees to lend to the riskiest borrowers that offer the highest expected returns as there is no incentive to 'save' on economic capital requirements that are equal for both safe and unsafe borrowers. Therefore statement I is correct.
Given that the portfolio of such an institution is likely to then comprise poor quality borrowers, and economic capital would be based upon 'average' expected ratings, it is likely to carry lower economic capital given its exposures. Therefore any such economic risk capital model is likely to understate economic capital requirements. Therefore statement IV is correct.
Statements II and III are incorrect and Choice 'b' is the correct answer.
NEW QUESTION # 276
The largest 10 losses over a 250 day observation period are as follows. Calculate the expected shortfall at a
98% confidence level:
20m
19m
19m
17m
16m
13m
11m
10m
9m
9m
- A. 18.2
- B. 0
- C. 19.5
- D. 14.3
Answer: A
Explanation:
For a dataset with 250 observations, the top 2% of the losses will be the top 5 observations. Expected shortfall is the average of the losses beyond the VaR threshold. Therefore the correct answer is (20 + 19 + 19 + 17 +
16)/5 = 18.2m .
Note that Expected Shortfall is also called conditional VaR (cVaR), Expected Tail Loss and Tail average.
NEW QUESTION # 277
A bank extends a loan of $1m to a home buyer to buy a house currently worth $1.5m, with the house serving as the collateral. The volatility of returns (assumed normally distributed) on house prices in that neighborhood is assessed at 10% annually. The expected probability of default of the home buyer is 5%.
What is the probability that the bank will recover less than the principal advanced on this loan; assuming the probability of the home buyer's default is independent of the value of the house?
- A. Less than 1%
- B. More than 5%
- C. More than 1%
- D. 0
Answer: A
Explanation:
The bank will not be able to recover the principal advanced on this loan if both the home buyer defaults, and the house value falls to less than $1m, ie the price moves adversely by more than $500k, which is $-500k
/$150k = -3.33#. (Note that 150k is the 1 year volatility in dollars, ie $1.5m * 10%).
The probability of both these things happening together is just the product of the two probabilities, one of which we know to be 5%. The other is also certainly a small number, and intuitively it is clear that the probability of both the things happening together will be less than 1%.
For a more precise answer, we can calculate the probability of the house price falling by 3.33 standard deviations by calculating the area under the standard normal curve to the left of -3.33#. This indeed is a very small number (actually equal to NORMSINV(-3.33)=0.00043), which when multiplied by the probability of default of the home buyer at 5% is certainly going to be less than 1%. Therefore Choice 'b' is the correct answer.
NEW QUESTION # 278
The risk that a counterparty fails to deliver its obligation upon settlement while having received the leg owed to it is called:
- A. Settlement risk
- B. Pre-settlement risk
- C. Replacement risk
- D. Credit risk
Answer: A
Explanation:
Choice 'd' is the correct answer. Settlement risk, as the name suggests, arises upon settlement when one of the parties delivers its obligation under the transaction and the other does not. Consider a EUR/USD FX forward contract maturing in a month. At maturity, one of the parties will deliver EURs and the other USDs. If one party fails to deliver, then it constitutes a very large risk to the other party. This risk is much larger than pre- settlement risk, because the amount at risk is the entire notional and not just the replacement value. Of course, settlement risk exists for a very short period of time, no more than a number or hours or a day.
There is no such thing as 'replacement risk', and credit risk is a larger category of which settlement risks is one component. Settlement risk is the most appropriate answer.
NEW QUESTION # 279
Between two options positions with the same delta and based upon the same underlying, which would have a smaller VaR?
- A. both positions would have an identical VaR
- B. the position with a lower gamma
- C. the position with a higher gamma
- D. the position with a higher theta
Answer: C
Explanation:
The second order approximation of the VaR of an options position is given by [Option delta x Underlying's VaR - Option gamma/2 x (Underlying's VaR)