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NEW QUESTION: 1
Statistical process control is a technique primarily used to:
A. implement mistake-proofing techniques.
B. reduce the number of inspection steps.
C. identify special-cause variation.
D. reduce preventive maintenance.
Answer: C
NEW QUESTION: 2
If E denotes the expected value of a loan portfolio at the end on one year and U the value of the portfolio in the worst case scenario at the 99% confidence level, which of the following expressions correctly describes economic capital required in respect of credit risk?
A. U
B. E - U
C. U/E
D. E
Answer: B
Explanation:
Explanation
Economic capital in respect of credit risk is intended to absorb unexpected losses. Unexpected losses are the losses above and beyond expected losses and up to the level of confidence that economic capital is being calculated for. The capital required to cover unexpected losses in this case is E - U, and therefore Choice 'a' is the correct answer.
This question does raise an important point - are expected losses a part of economic capital, or are they not?
Different text books say different things, and sometimes they say both the things. I have tried to take an approach that uses what I read in the PRMIA handbook.
This
writeup - http://www.riskprep.com/all-tutorials/37-exam-3/111-credit-var-an-intuitive-understanding - may help clarify things further.
NEW QUESTION: 3
Refer to the exhibit.
An administrator uses the search criteria displayed in the exhibit.
Which results are returned from the query?
A. all Windows 2012 Servers and all Virtualized Servers in the Default Group
B. all Windows 2012 Servers in the Default Group
C. only VMware Servers in the Default Group
D. only Windows 2012 Servers that are Virtualized in the Default Group
Answer: D
NEW QUESTION: 4
Which of the following models uses unique groups contained in unique conflict classes?
A. Clark-Wilson
B. Biba
C. Bell-LaPadula
D. Chinese Wall
Answer: A
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