8010 Exam Dumps | When building a operational loss distribution by combining a loss frequency distribution and a loss severity

Home
PRMIA
Operational Risk Manager (ORM) Exam
PRMIA.8010.v2022-06-27.q87
Question 71

Valid 8010 Dumps shared by ExamDiscuss.com for Helping Passing 8010 Exam! ExamDiscuss.com now offer the newest 8010 exam dumps, the ExamDiscuss.com 8010 exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com 8010 dumps with Test Engine here:

Access 8010 Dumps Premium Version
(242 Q&As Dumps, 35%OFF Special Discount Code: freecram)

<< Prev Question Next Question >>

Question 71/87

When building a operational loss distribution by combining a loss frequency distribution and a loss severity distribution, it is assumed that:
I. The severity of losses is conditional upon the numberof loss events
II. The frequency of losses is independent from the severity of the losses III. Both the frequency and severity of loss events are dependent upon the state of internal controls in the bank

A. I, II and III

B. II

C. II and III

D. I and II

Correct Answer: B

Explanation
When a operational loss frequency distribution (which, for example, may be based upon a Poisson distribution) and a loss severity distribution (for example, based upon a lognormal distribution), it is assumed that the frequency of losses and the severity of the losses are completely independent and do not impact each other. Therefore statement II is correct, and the others are not valid assumptions underlying the operational loss distribution.

Your email address will not be published. Required fields are marked *

Comment: *

Name: *

Email: *

Rating: *

Verification: *

Question List (87q): Question 1: Calculate the 1-year 99% credit VaR of a portfolio of two bo...; Question 2: Which of the following statements are correct in relation to...; Question 3: Which of the following situations are not suitable for apply...; Question 4: If two bonds with identical credit ratings, coupon and matur...; Question 5: If the cumulative default probabilities of default for years...; Question 6: Which of the following is not one of the 'three pillars' spe...; Question 7: If the marginal probabilities of default for a corporate bon...; Question 8: Aderivative contract has a negative current replacement valu...; Question 9: According to the Basel II framework, subordinated term debt ...; Question 10: Financial institutions need to take volatility clustering in...; Question 11: There are two bonds in a portfolio, each with a market value...; Question 12: When considering a request for a loan from a retail customer...; Question 13: A cumulative accuracy plot:; Question 14: What would be the consequences of a model of economic risk c...; Question 15: Which of the following carry greater counterparty risk: a fo...; Question 16: Which of the following statements is NOT true in relation to...; Question 17: Which of the following represents a riskier exposure for a b...; Question 18: Which of the following statements is true:...; Question 19: According to Basel II's definition of operational loss event...; Question 20: All else remaining the same, an increase in the joint probab...; Question 21: Which of the following is not a credit event under ISDA defi...; Question 22: Which of the following does not affect the credit risk facin...; Question 23: The CDS rate on a defaultable bond is approximated by which ...; Question 24: Which of the following is not a tool available to financial ...; Question 25: Which of the following decisions need to be made as part of ...; Question 26: Which of the following credit risk models relies upon theana...; Question 27: Which of the following will be a loss not covered by operati...; Question 28: Credit exposure for derivatives is measured using...; Question 29: Under the credit migration approach to assessing portfolio c...; Question 30: Which of the following statements are true: I. The set of Uo...; Question 31: Which of the following steps are required for computing the ...; Question 32: Under the internal ratings based approach for risk weighted ...; Question 33: For a given mean, which distribution would you prefer for fr...; Question 34: In respect of operational risk capital calculations, the Bas...; Question 35: Which of the following statements are correct? I. A reliance...; Question 36: When modeling operational risk using separate distributions ...; Question 37: Which loss event type is the failure to timely deliver colla...; Question 38: For a hypotherical UoM, the number of losses in two non-over...; Question 39: Which of the following statements is true: I. Confidence lev...; Question 40: Loss provisioning is intended to cover:...; Question 41: If the full notional value of a debt portfolio is $100m, its...; Question 42: A key problem with return on equity as a measure of comparat...; Question 43: If the default hazard rate for a company is 10%, and the spr...; Question 44: For a 10 year interest rate swap, what would be the worst ti...; Question 45: Which of the following should be included when calculating t...; Question 46: If E denotes the expected value of a loan portfolio at the e...; Question 47: Under the contingent claims approach to measuring credit ris...; Question 48: For a loan portfolio, unexpected losses are charged against:...; Question 49: A bank extends a loan of $1m to a home buyer to buy a house ...; Question 50: The standalone economic capital estimates for the three unco...; Question 51: A stock that follows the Weiner process has its future price...; Question 52: For a given notional amount, which of the following carries ...; Question 53: Which of the following statements is true I. If no loss data...; Question 54: The generalized Pareto distribution, when used in the contex...; Question 55: Which of the following formulae correctly describes Componen...; Question 56: Which of the following is not a limitation of the univariate...; Question 57: Which of the following credit risk models includes a conside...; Question 58: Which of the following can be used to reduce credit exposure...; Question 59: A loan portfolio's full notional value is $100, and its valu...; Question 60: If X represents a matrix with ratings transition probabiliti...; Question 61: Which of the following need to be assumed to convert a trans...; Question 62: If the odds of default are 1:5, what is the probability of d...; Question 63: CreditRisk+, the actuarial model for calculating portfolio c...; Question 64: Which of the following is not a permitted approach under Bas...; Question 65: A portfolio has two loans, A and B, each worth $1m. The prob...; Question 66: When fitting a distribution in excess of a threshold as part...; Question 67: The VaR of a portfolio at the 99% confidence level is $250,0...; Question 68: Which of the following belong in a credit risk report?...; Question 69: A long position in a creditsensitive bond can be synthetical...; Question 70: What ensures that firms are not able to selectively default ...; Question 71: When building a operational loss distribution by combining a...; Question 72: Which of the following are valid criticisms of value at risk...; Question 73: Which of the following is not an event of default covered in...; Question 74: The probability of default of a security during the first ye...; Question 75: An operational loss severity distribution is estimated using...; Question 76: There are two bonds in a portfolio, each with a marketvalue ...; Question 77: When pricing credit risk for an exposure, which of the follo...; Question 78: A bank holds a portfolio ofcorporate bonds. Corporate bond s...; Question 79: If A and B be two debt securities, which of the following is...; Question 80: The loss severity distribution for operational risk loss eve...; Question 81: A Bank Holding Company (BHC) is invested in an investment ba...; Question 82: The key difference between 'top down models' and 'bottom up ...; Question 83: Under the KMV Moody's approach to credit risk measurement, h...; Question 84: CreditRisk+, the actuarial model for calculating portfolio c...; Question 85: Under the CreditPortfolio View approach to credit risk model...; Question 86: The 99% 10-day VaR for a bank is $200mm. The average VaR for...; Question 87: Which of the following techniques is used to generate multiv...

[×]

Download PDF File

Enter your email address to download PRMIA.8010.v2022-06-27.q87.pdf

Email:

Disclaimer:
Freecram doesn't offer Real GIAC Exam Questions. Freecram doesn't offer Real SAP Exam Questions. Freecram doesn't offer Real (ISC)² Exam Questions. Freecram doesn't offer Real CompTIA Exam Questions. Freecram doesn't offer Real Microsoft Exam Questions.
Oracle and Java are registered trademarks of Oracle and/or its affiliates.
Freecram material do not contain actual actual Oracle Exam Questions or material.
Microsoft®, Azure®, Windows®, Windows Vista®, and the Windows logo are registered trademarks of Microsoft Corporation.
Freecram Materials do not contain actual questions and answers from Cisco's Certification Exams. The brand Cisco is a registered trademark of CISCO, Inc.
CFA Institute does not endorse, promote or warrant the accuracy or quality of these questions. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Freecram does not offer exam dumps or questions from actual exams. We offer learning material and practice tests created by subject matter experts to assist and help learners prepare for those exams. All certification brands used on the website are owned by the respective brand owners. Freecram does not own or claim any ownership on any of the brands.

Question 71/87

LEAVE A REPLY

Download PDF File