8011 PDF QUESTIONS WITH A GUARANTEED SUCCESS 2025

8011 PDF Questions with A Guaranteed Success 2025

8011 PDF Questions with A Guaranteed Success 2025

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PRMIA 8011 Exam covers a range of topics related to credit and counterparty risk, including credit analysis, credit rating, credit derivatives, default risk, and counterparty credit risk. It is intended for professionals who work in the financial industry, including risk managers, credit analysts, traders, and other financial professionals who are involved in managing credit and counterparty risk.

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8011 Exam Dumps.zip Exam Latest Release | Updated PRMIA 8011: Credit and Counterparty Manager (CCRM) Certificate Exam

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To prepare for the PRMIA 8011 Exam, candidates must have a strong understanding of financial markets and instruments, as well as the principles of risk management. PRMIA offers a variety of study materials and resources to help candidates prepare for the exam, including study guides, practice exams, and online courses. Additionally, PRMIA hosts events and webinars that cover topics related to credit and counterparty risk, providing candidates with valuable insights and networking opportunities.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q303-Q308):

NEW QUESTION # 303
Which of the following is a cause of model risk in risk management?

  • A. All of the above
  • B. Misspecification of the model
  • C. Incorrect parameter estimation
  • D. Programming errors

Answer: A

Explanation:
Model risk is the risk that a model built for estimating a variable will produce erroneous estimates. Model risk is caused by a number of factors, including:
a) Misspecifying the model: For example, using a normal distribution when it is not justified.
b) Model misuse: For example, using a model built to estimate bond prices to estimate equity prices c) Parameter estimation errors: In particular, parameters that are subjectively determined can be subject to significant parameter estimation errors d) Programming errors: Errors in coding the model as part of computer implementation may not be detected by end users e) Data errors: Errors in data used for building the model may also introduce model risk Therefore the correct answer is d, as all the choices are a source of model risk.


NEW QUESTION # 304
Which of the following distributions is generally not used for frequency modeling for operational risk

  • A. Negative binomial
  • B. Poisson
  • C. Binomial
  • D. Gamma

Answer: D

Explanation:
Frequency modeling is performed using discrete distributions that have a positive integer as a resultant - this allows for the number of events per period of time to be modeled. Of the distributions listed above, Poisson, negative binomial and binomial can be used for modeling frequency distributions. The Poisson and negative binomial distributions are encountered the most in practice.
The gamma distribution is a continuous distribution and cannot be used for frequency modeling.


NEW QUESTION # 305
Under the basic indicator approach to determining operational risk capital, operational risk capital is equal to:

  • A. 25% of the average gross income (considering only the positive years) of the past three years
  • B. 15% of the average gross income (considering only the positive years) of the past three years
  • C. 15% of the average gross income of the past five years
  • D. 15% of the average net income (considering only the positive years) of the past three years

Answer: B

Explanation:
Choice 'a' is the correct answer. According to the Basel II document, banks using the Basic Indicator Approach must hold capital for operational risk equal to the average over the previous three years of a fixed percentage (denoted alpha, and currently 15%) of positive annual gross income. Figures for any year in which annual gross income is negative or zero should be excluded from both the numerator and denominator when calculating the average.


NEW QUESTION # 306
Under the contingent claims approach to credit risk, risk increases when:
I. Volatility of the firm's assets increases
II. Risk free rate increases
III. Maturity of the debt increases

  • A. I, II and III
  • B. II and III
  • C. I and III
  • D. I and II

Answer: C

Explanation:
Under the contingent claims approach, credit risk is evaluated as the value of the put on the firm's assets with a strike price equal to the face value of the debt and maturity equal to the maturity of the obligation. The Black Scholes model can then be used to value the put, and therefore an increase in volatility and the time to expiry (ie maturity) will increase the value of the debt. An increase in the risk free rate will actually reduce the value of the put, therefore statements I and III are correct and Choice 'b' is the correct answer.


NEW QUESTION # 307
Which of the following would not be a part of the principal component structure of the term structure of futures prices?

  • A. Tilt component
  • B. Curvature component
  • C. Parallel component
  • D. Trend component

Answer: C

Explanation:
The trend component refers to parallel shifts in the term structure, the tilt refers to changes in the shape of the term structure at the long and short ends, and the curvature refers to movements in the medium term part. The phrase 'parallel component' has no meaning and is not a part of the principal components in analyzing term structures.
Changes in the term structure can also be analyzed as "level, slope and curvature", so you should be aware of this terminology as well to refer to the principal components of a term structure analysis.


NEW QUESTION # 308
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