8011 ACTUAL DUMPS & EXAM 8011 BLUEPRINT

8011 Actual Dumps & Exam 8011 Blueprint

8011 Actual Dumps & Exam 8011 Blueprint

Blog Article

Tags: 8011 Actual Dumps, Exam 8011 Blueprint, 8011 Exam Dumps, 8011 Exam Quick Prep, 8011 Sample Test Online

As the industry has been developing more rapidly, our 8011 exam dumps have to be updated at irregular intervals in case of keeping pace with changes. To give you a better using environment, our experts have specialized in the technology with the system upgraded to offer you the latest 8011 Exam practices. What’s more, we won’t charge you in one-year cooperation; if you are pleased with it, we may have further cooperation. We will inform you of the latest preferential activities about our 8011 test braindumps to express our gratitude towards your trust.

To prepare for the PRMIA 8011 CCRM certificate exam, candidates need to have a background in finance, statistics, accounting or an equivalent degree. It is also advisable to go through the PRMIA official study materials and attend PRMIA approved training or workshops to improve their understanding of the certification exam’s topics. Passing the exam requires dedication, determination, and hard work, but obtaining the CCRM certification can significantly enhance a risk manager's career prospects.

>> 8011 Actual Dumps <<

Exam 8011 Blueprint & 8011 Exam Dumps

The PRMIA 8011 certification exam is one of the valuable credentials designed to demonstrate a candidate's technical expertise in information technology. They can remain current and competitive in the highly competitive market with the 8011 certificate. For novices as well as seasoned professionals, the Credit and Counterparty Manager (CCRM) Certificate Exam Questions provide an excellent opportunity to not only validate their skills but also advance their careers.

The Professional Risk Managers’ International Association (PRMIA) is a globally recognized organization that provides risk management education and certification programs to individuals and institutions. One of their most prestigious certification programs is the Credit and Counterparty Manager (CCRM) Certificate, which is designed to provide professionals with the skills and knowledge necessary to manage credit and counterparty risk in financial institutions.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q261-Q266):

NEW QUESTION # 261
Which of the following credit risk models focuses on default alone and ignores credit migration when assessing credit risk?

  • A. CreditPortfolio View
  • B. The CreditMetrics approach
  • C. The actuarial approach
  • D. The contingent claims approach

Answer: C

Explanation:
The correct answer is Choice 'd'. The following is a brief description of the major approaches available to model credit risk, and the analysis that underlies them:
1. CreditMetrics: based on the credit migration framework. Considers the probability of migration to other credit ratings and the impact of such migrations on portfolio value.
2. CreditPortfolio View: similar to CreditMetrics, but adds the impact of the business cycle to the evaluation.
3. The contingent claims approach: uses option theory by considering a debt as a put option on the assets of the firm.
4. KMV's EDF (expected default frequency) based approach: relies on EDFs and distance to default as a measure of credit risk.
5. CreditRisk+: Also called the 'actuarial approach', considers default as a binary event that either happens or does not happen. This approach does not consider the loss of value from deterioration in credit quality (unless the deterioration implies default).


NEW QUESTION # 262
Which of the following are ordered correctly in the order of debt seniority in a bankruptcy situation?
I). Equity, Subordinate debt, Senior debt
II). Senior debt, Preferred stock, Equity
III). Secured debt, Accounts payable, Preferred stock
IV). Secured debt, DIP financing, Equity

  • A. I
  • B. II, III and IV
  • C. I and IV
  • D. II and III

Answer: D

Explanation:
In a bankruptcy, equity ranks last. Preferred equity is one level above equity. Senior debt gets paid out first compared to junior debt, and secured debt is paid out first to the extent of the asset securing it (after which it counts as unsecured debt). Accounts payable and other short term liabilities are treated like unsecured creditors. Debtor-in-possession (DIP) financing ranks higher than any other asset as it is financing secured after the bankruptcy to continue the business.
Based on the above, statement I does not represent a correct ordering of seniority as equity is paid last.
Similarly, DIP financing receives higher priority than even secured debt, and therefore statement IV is incorrect. Therefore the only correct statements are II and III and Choice 'a' is the correct answer.


NEW QUESTION # 263
Which of the following statements are true in relation to Historical Simulation VaR?
I. Historical Simulation VaR assumes returns are normally distributed but have fat tails II. It uses full revaluation, as opposed to delta or delta-gamma approximations III. A correlation matrix is constructed using historical scenarios IV. It particularly suits new products that may not have a long time series of historical data available

  • A. II
  • B. All of the above
  • C. II and III
  • D. I and IV

Answer: A

Explanation:
Historical Simulation VaR is conceptually very straightforward: actual prices as seen during the observation period (1 year, 2 years, or other) become the 'scenarios' forming the basis of the valuation of the portfolio. For each scenario, full revaluation is performed, and a P&L data set becomes available from which the desired loss quantile can be extracted.
Historical simulation is based upon actually seen prices over a selected historical period, therefore no distributional assumptions are required. The data is what the data is, and is the distribution. Statement I is therefore not correct.
It uses full revaluation for each historical scenario, therefore statement II is correct.
Since the prices are taken from actual historical observations, a correlation matrix is not required at all.
Statement III is therefore incorrect (it would be true for Monte Carlo and parametric Var).
Historical simulation VaR suffers from the limitation that if enough representative data points are no available during the historical observation period from which the scenarios are drawn, the results would be inaccurate.
This is likely to be the case for new products. Therefore Statement IV is incorrect.


NEW QUESTION # 264
Which of the following are valid approaches to leveraging external loss data for modeling operational risks:
I. Both internal and external losses can be fitted with distributions, and a weighted average approach using these distributions is relied upon for capital calculations.
II. External loss data is used to inform scenario modeling.
III. External loss data is combined with internal loss data points, and distributions fitted to the combined data set.
IV. External loss data is used to replace internal loss data points to create a higher quality data set to fit distributions.

  • A. II and IV
  • B. I and III
  • C. All of the above
  • D. I, II and III

Answer: D

Explanation:
Internal loss data is generally the highest quality as it is relevant, and is 'real' as it has occurred to the organization. External loss data suffers from a significant limitation that the risk profiles of the banks to which the data relates is generally not known due to anonymization, and may likely may not be applicable to the bank performing the calculations. Therefore, replacing external loss data with external loss data is not a good idea. Statement IV is therefore incorrect.
All other approach described are valid approaches for the risk analyst to consider and implement. Therefore statements I, II and III are correct and IV is not.


NEW QUESTION # 265
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.

  • A. I, II, III and IV
  • B. II, III and IV
  • C. I and II
  • D. I, II and III

Answer: A

Explanation:
Delta is non-linear with respect to prices for a number of securities such as bonds, options and other derivatives. It changes with changes in prices, and any hedge initially undertaken becomes quickly mismatched. Therefore delta hedges need to be managed quite actively and kept up-to-date. Therefore I is true.
Primary risks comprise most of the risk in a position, and therefore portfolio managers are right to focus on them over secondary risks. Therefore II is true.The greater the hedge rebalance frequency, the lower is the hedge mismatch at any point in time, and therefore residual risks would be lower. However, rebalancing hedges requires rebalance trades to be done, and these involve transaction costs. Generally, a reasonable balance needs to be struck between the frequency of rebalances (a lower frequency increases residual risk, but this residual risk is not directionally biased) and the costs of rebalancing. III is correct.Vega risk is the risk arising due to changes in prices due to changes in volatility. Options carry vega risk. Therefore any hedges against vega risks can only be obtained using other options positions. (Vega risk may also be hedged using other volatility based products, eg an OTC volatility swap, or a VIX futures type product.)


NEW QUESTION # 266
......

Exam 8011 Blueprint: https://www.bootcamppdf.com/8011_exam-dumps.html

Report this page