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  5. 2016-FRR

Free 2016-FRR Exam Braindumps (page: 40)

Page 40 of 86
PDF with 342 Questions

Returns on two assets show very strong positive linear relationship. Their correlation should be closest to which of the following choices?

  1. 15%
  2. 45%
  3. 60%
  4. 100%

Answer(s): D



A multinational bank just bought two bonds each worth $10,000. One of the bonds pays a fixed interest of 5% semi-annually and the other pays LIBOR semi-annually. The six month LIBOR is at 5% currently. The risk manager of the bank is concerned about the sensitivity to interest rates.
Which of the following statements are true?

  1. The price of the bond paying floating interest is more sensitive to interest rates than the bond paying fixed interest.
  2. The price of the bond paying fixed interest is more sensitive to interest rates than the bond paying floating interest.
  3. Both bond prices are equally sensitive to interest rates.
  4. The given information is not enough to determine the sensitivity of the bond prices.

Answer(s): B



Which one of the following four statements represents the advantages of the historical sim-ulation method when calculating VaR?

  1. Solve the problem caused by incorrectly assuming that asset returns are normally distributed.
  2. Rely on current market data to describe the distribution of returns and determine volatilities.
  3. Are believed to be superior in accuracy predicting future levels of realized volatility.
  4. Are only using loss probabilities that can be found in tables of the standard normal distribution.

Answer(s): A



Which one of the following statements is an advantage of using implied volatility as an input when calculating VaR?

  1. Implied volatility assumes volatilities are constant which makes it easy to implement in models.
  2. Current market data is used to determine implied volatilities, which makes them forward looking measures
  3. Implied volatilities are better at predicting actual volatilities
  4. Loss probabilities from the standard normal distribution are used to compute implied volatilities, which makes it easy to compute the.

Answer(s): B



Page 40 of 86



Post your Comments and Discuss GARP 2016-FRR exam with other Community members:

Phil commented on September 26, 2024
Hi @kg I feel you. Based on my experience, the questions are valid but some of the answers were not accurate. So I managed to study and kinda figure these answers. For me the accuracy of the questions were more important and I saw most of them in the exam.
Anonymous
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Madhan commented on September 26, 2024
Useful questions
INDIA
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Owol Sentmi commented on September 26, 2024
great Questions
Anonymous
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Noha commented on September 26, 2024
Feeling very confident now. Went over the free questions here then decided to buy the full PDF and test engine with the sale price and now ready to write my test. Will share my experience next week after I go for my exam. Wish me luck guys.
UNITED STATES
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Baylis commented on September 26, 2024
I am certified now. Thank you team.
UNITED STATES
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Harper commented on September 26, 2024
If you have access to full version of this exam dumps then you are good to go and pass your exam.
EUROPEAN UNION
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Suil commented on September 26, 2024
Very good Practice questions
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lala commented on September 26, 2024
really helping
Anonymous
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Champ commented on September 26, 2024
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kg commented on September 26, 2024
anyone who sees this comment please respond to my question, can the answers on freedumps be trusted , because im using different materials also from exam topics and the answers dont look the same
Anonymous
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Shams commented on September 25, 2024
This exam is valid in UAE. I passed.
UNITED ARAB EMIRATES
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rb commented on September 25, 2024
these are really good questions
Anonymous
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Muhammad Saleem commented on September 25, 2024
In which Service Studio layer can Entities be found? I think Answer should be Data but It's Interface
UNITED ARAB EMIRATES
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Khoshal commented on September 25, 2024
@Emily I have taken this exam and yes it is hard. But I managed to pass this exam with some study and using the questions from this exam dumps. I would say about 80% more or less of these questions are in the exam.
INDIA
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Emily commented on September 25, 2024
I understand that most users reported that this exam is very hard. But how much of these questions were present in the exam if anyone has taken the exam? Please share.
Hong Kong
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john commented on September 25, 2024
these are really good ques
Anonymous
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Catho commented on September 25, 2024
I blindly trusted this site and purchased the full version. Well I am happy I did. Now I acquired my certificate and pass my exam.
EUROPEAN UNION
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Gorbender commented on September 25, 2024
There are some new questions in this exam which are not present in this exam dumps. But about 75 to 80% of the questions are there. It was enough for me to pass.
INDIA
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Nik commented on September 25, 2024
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