Free PRMIA 8004 Exam Dumps Questions & Answers

The sensitivity analysis required under IFRS would have done what for China Aviation Oil?

• A.None of the above
• B.Only provided the time value of its outstanding option position
• C.Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices
• D.Only provided the intrinsic value of its outstanding option positions

What is (are) the lesson(s) of the Barings' failure?

• A.Incentive plans have risk management implications
• B.All of the above
• C.Large profits can be an indicator of risk
• D.Front and back offices need to be independent

According to the G-30 Study, the risk management infrastructure's funding must be

• A.determined at the Board level with inputs from business unit leaders
• B.determined at the Board level without influence by business unit leaders
• C.determined by the regulators
• D.determined by business-unit leaders

The Bankers Trust Case Study is about:

• A.reliance on thinly traded derivatives to hedge
• B.large losses at the proprietary trading desk
• C.failure to guard its clients' best interests
• D.overexposure to the real estate market

Which of the following was NOT a factor in the Long Term Capital Management case?

• A.Model risk
• B.Changes/breakdowns in historical correlations
• C.Unwinding of liquid positions at the beginning of major losses
• D.Inadequate separation of front and back offices