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NEW QUESTION: 1
A statement in the annual report of a bank states that the 10-day VaR at the 95% level of confidence at the end of the year is $253m. Which of the following is true:
I. The maximum loss that the bank is exposed to over a 10-day period is $253m.
II. There is a 5% probability that the bank's losses will not exceed $253m III. The maximum loss in value that is expected to be equaled or exceeded only 5% of the time is $253m IV. The bank's regulatory capital assets are equal to $253m
A. III only
B. I and III
C. II and IV
D. I and IV
Answer: A
Explanation:
Explanation
Statement I is not correct as VaR does not set an upper limit on losses. In this case, the bank expects the losses to exceed $253m 5% of the times, and the VaR number does not indicate any theoretical maximum amount of losses.Statement II is incorrect as there is a 95% (and not 5%) probability that the bank's losses will not exceed
$253mStatement III is correct and describes VaR.Statement IV is incorrect, as regulatory capital is a more complex computation for which VaR is only one of the various input.Therefore Choice 'b' is the correct answer.
NEW QUESTION: 2
City High School basketball coach Donna Green earns $26,000 a year. If she receives a 4.5% salary increase, how much will she earn?
A. $26,110
B. $26,450
C. $27,260
D. $27,170
E. $29,200
Answer: D
Explanation:
Explanation/Reference:
Explanation:
There are three steps involved in solving this problem. First, convert 4.5% to a decimal: 0.045. Multiply that by $26,000 to find out how much the salary increases. Finally, add the result ($1,170) to the original salary of $26,000 to find out the new salary, $27,170.
NEW QUESTION: 3
Which of the following attributes can you maintain in an account assignment category in SAP Materials
Management?
There are 3 correct answers to this question.
Response:
A. Message output parameter
B. Special stock
C. Account modification
D. Consumption posting
E. Valuation class
Answer: B,C,D
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