Frm exam 1 - Study guides, Class notes & Summaries

FRM Exam 1 Complete Questions And Solutions

Shortcomings of risk metrics -May not scale over time -Historical data may be meaningless -Not designed to account for catastrophes -VaR says nothing about losses in excess of VaR -May not handle sudden illiquidity Importance of communication for risk managers Need to assess risk and tell management so they can determine which risks to take on Ways firms can fail to account for risks -Firm may ignore known risk -Somebody in firm may know about risk, but it's not captured b...

FRM Exam 1

FRM Exam 1

1. 2. 3. 4. A risk manager is deciding between buying a futures contract on an exchange and buying a forward contract directly from a counterparty on the same underlying asset. Both contracts would have the same maturity and delivery specifications. The manager finds that the futures price is less than the forward price. Assuming no arbitrage opportunity exists, what single factor acting alone would be a realistic explanation for this price difference? a. The futures contract i...

FRM exam 1 Questions And Complete Solutions

FRM Exam 1 with 100% Correct Answers 2023

banks for profit, more services, higher fees, lower interest rates credit unions non profit, higher interest rates, lower fees, shareholders (membership) sunk cost already lost it resource theory people try to meet their needs in the context of social interaction 6 types of resource theory love, status, information, money, good, and services fixed expense set cost; same amount aka rent variable expense change; gas, groceries types of saving...

2018 Financial Risk Manager (FRM®) Exam Part I Quantitative Analysis Eighth Custom Edition for the Global Association of Risk Professionals Global Association of Risk Professionals Excerpts taken from: Introduction to Econometrics, Brief Edition by James H. Stock and Mark W. Watson Excerpts taken from: Introduction to Econometrics, Brief Edition by James H. Stock and Mark W. Watson Copyright © 2008 by Pearson Education, Inc. Published by Addison Wesley Boston, Mass...