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NEW QUESTION: 1

A. Option D
B. Option A
C. Option C
D. Option B
Answer: B

NEW QUESTION: 2
Which of the following statements are true:
I. Liquidity risks during time of crisis may be exacerbated by large collateral calls continuing over a period of time.
II. Stress tests are always separately modeled from VaR computations which cannot deal with stress scenarios of the kind considered in stress tests.
III. A maximum loss scenario considers the maximum possible loss given a 'plausibility constraint' that is based upon the joint probability of such a loss happening
A. I and II
B. I and III
C. I, II and III
D. II and III
Answer: B
Explanation:
Explanation
If VaR is calculated based upon historical simulations, and these simulations are designed as to include all stress scenarios of interest, then VaR and stress tests can be a part of an integrated risk measurement system.
Therefore it is not correct to say that stress tests are always separately modeled from VaR and II is false. I and III are true, and therefore Choice 'd' is the correct answer.

NEW QUESTION: 3
DRAG DROP

Answer:
Explanation: