CITM-001 Practice Questions

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NEW QUESTION: 1
"Material" in the phrase "material non-public information" refers to information that:
A. is arrived at through discussions with senior management of a company.
B. a normal investor would consider important in making his investment decision.
C. is arrived at through discussions with a special friend that works at the company.
Answer: B
Explanation:
Information is material if its disclosure would be likely to have an impact on the price of the security, OR if the reasonable investor would want to know the information prior to making the investment decision.

NEW QUESTION: 2
Which of the following statements are true for enterprise's risk management capability maturity level 3?
A. The enterprise formally requires continuous improvement of risk management skills, based on clearly defined personal and enterprise goals
B. The business knows how IT fits in the enterprise risk universe and the risk portfolio view
C. Workflow tools are used to accelerate risk issues and track decisions
D. Explanation:
An enterprise's risk management capability maturity level is 3 when:
Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are
recognized.
There is a selected leader for risk management, engaged with the enterprise risk committee,
across the enterprise.
The business knows how IT fits in the enterprise risk universe and the risk portfolio view.
Local tolerances drive the enterprise risk tolerance.
Risk management activities are being aligned across the enterprise.
Formal risk categories are identified and described in clear terms.
Situations and scenarios are included in risk awareness training beyond specific policy and
structures and promote a common language for communicating risk.
Defined requirements exist for a centralized inventory of risk issues.
Workflow tools are used to accelerate risk issues and track decisions.
E. Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are recognized
Answer: B,C,D,E
Explanation:
is incorrect. Enterprise having risk management capability maturity level 5 requires continuous improvement of risk management skills, based on clearly defined personal and enterprise goals.

NEW QUESTION: 3
A company has produced a new module. The failure data on 40 returns are shown below.

If the time to failure follows a normal distribution, what is the probability that time to failure exceeds 20 hours ?
Response:
A. 0.028
B. 0.950
C. 0.050
D. 0.972
Answer: A