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NEW QUESTION: 1
Which of the following are valid techniques used when performing stress testing based on hypothetical test scenarios:
I. Modifying the covariance matrix by changing asset correlations
II. Specifying hypothetical shocks
III. Sensitivity analysis based on changes in selected risk factors
IV. Evaluating systemic liquidity risks
A. II, III and IV
B. I, II and III
C. I, II, III and IV
D. I and II
Answer: D
Explanation:
Explanation
Each of these represent valid techniques for performing stress testing and building stress scenarios. Therefore d is the correct answer. In practice, elements of each of these techniques is used depending upon the portfolio and the exact situation.

NEW QUESTION: 2
Given:


A. Option D
B. Option E
C. Option A
D. Option C
E. Option B
Answer: D

NEW QUESTION: 3



Answer:
Explanation: