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NEW QUESTION: 1
The unexpected loss for a credit portfolio at a given VaR estimate is defined as:
A. VaR - Expected Loss
B. max(Actual Loss - Expected Loss, 0)
C. Actual Loss - VaR
D. Actual Loss - Expected Loss
Answer: A
Explanation:
Explanation
Unexpected loss for a credit portfolio refers to the excess of the VaR estimate over the average expected loss.
The term 'unexpected loss' has this specific meaning in the context of credit risk, and not any other intuitive meaning. So if for a portfolio worth $100m expected losses are 4%, and the credit VaR at 99% is $12m, then unexpected losses at that VaR quintile are $8m. This is unrelated to actual realized losses versus expected losses.
Therefore Choice 'd' is the correct answer and the others are not.
Unexpected loss is used to determine the capital reserves to be maintained against a credit portfolio at a certain level of confidence.
NEW QUESTION: 2
As applied to inventories, it is usually found that the relationship between the percentage of items and the percentage of annual dollar usage follows a pattern in which three groups can be defined:
Group A About 50 % of the items account for about 5 % of the dollar usage Group B About 20 % of the items account for about 80 % of the dollar usage Group C About 30 % of the items account for about 15 % of the dollar usage
A. False
B. True
Answer: A
NEW QUESTION: 3
About adding UC accounts on the BMU, which of the following statements are CORRECT? (Multiple Choice)
A. Before adding UC accounts on the BMU, you must create a number allocation policy.
B. UC accounts that have been added on the BMU can be used for a login to the BMU for self-services.
C. A number allocation policy defines the unified gateway to be used, authentication mode, and number rights.
D. If the BMU is integrated with the AD, the numbers added on the BMU will be synchronized to the AD.
Answer: B,C