Free PRMIA 8010 Exam Dumps Questions & Answers

Which of the following is NOT an approach used to allocate economic capital to underlying business units:

• A.  Fixed ratio economic capital contributions
• B.  Stand alone economic capital contributions
• C.  Incremental economic capital contributions
• D.  Marginal economic capital contributions

Under the CreditPortfolio View model of credit risk, the conditional probability of default will be:

• A.  the same as the unconditional probability of default in an economic expansion
• B.  lower than the unconditional probability of default in an economic expansion
• C.  lower than the unconditional probability of default in an economic contraction
• D.  higherthan the unconditional probability of default in an economic expansion

According to the Basel II framework, subordinated term debt that was originally issued 4 years ago with amaturity of 6 years is considered a part of:

• A.  Tier 2 capital
• B.  None of the above
• C.  Tier 3 capital
• D.  Tier 1 capital

Which of the following formulae describes Marginal VaR for a portfolio p, where V_i is the value of the i-th asset in the portfolio? (All other notation and symbols have their usual meaning.) A)

B)

C)

D)
All of the above

• A.  Option A
• B.  Option C
• C.  Option D
• D.  Option B

For a FX forward contract, what would be the worst time for a counterparty to default (in terms of the maximum likely credit exposure)

• A.  Right after inception
• B.  Indeterminate from the given information
• C.  At maturity
• D.  Roughlythree-quarters of the way towards maturity