THE CONCEPT OF RISK

If different business and financial markets are known to be correlated:

A risk may be 'accepted and reduced' through

In a Risk Management Framework, what activity is most likely to follow Risk Evaluation?

You are a treasurer of a listed volume house builder. Which of the following benchmarking information is most likely to be DIFFICULT to obtain?

A company expects a $10 million receipt in one month's ( 30 days ) time and will invest these funds for three months (91 days) until they are required in the business. By taking out an FRA, which of the following BEST describes the 'risk response' that Company A has taken to the $ interest rate risk?

In a typical risk management framework, which of the following tasks would be the most likely to be carried out at the Risk Assessment stage?

In a probability/impact matrix, the severity of consequence is LEAST likely to be measured in terms of:

In a typical risk management framework, which of the following activities would be most likely to include a VaR calculation?

Which of the following time horizons are LEAST appropriate when assessing the frequency of a risk even in a Probability/Impact Matrix

Treasury policy is most likely to prohibit:

An investment portfolio of USD shares has a value of USD 100 million and daily value standard deviation of EUR 250,000. The current exchange rate is EUR/USD 1.48, What is the best estimate of the daily Value at Risk at a 95 confidence level in EUR? Before you start on this type of question: Make a note of the currency for the amount of VaR. Make a note of the given standard deviation. Is it in the same currency as the amount of the VaR? If yes, you can ignore any forex rate details.

A US company holds USD 10 million of EUR dominated assets. The EUR/USD 30 day standard deviation is 1.6%, the EUR/USD spot rate is 1.6000, and the z score at 95% confidence is 1.65. what is the best estimate of the 95% 30 day value at risk on the EUR denominated assets?

A US company holds USD 10 million of EUR dominated assets. The EUR/USD 30 day standard deviation is 1.6%, the EUR/USD spot rate is 1.6000, and the z score at 95% confidence is 1.65. what is the best estimate of the 95% 30 day value at risk on the EUR denominated assets?

What is the daily VaR at 95% confidence level for a USD 5 million exposure against GBP if the standard deviation for the daily change in USD/GBP is 0.5000%

An asset has a current value of 25 with a one-month standard deviation of 3. Its value follows a normal distribution. The best estimate of the probability of the investment being worth between 22 and 28 in one month's time is:

Red expects to convert USD 50 million into EUR in 6 months. Current rates are: EUR/USD spot rate 1.1598 EUR/USD 6 months forward rate 1.1669 If the 6 month EUR/USD standard deviation is 6% what is the best estimate of the EUR value at risk on this receipt, in EUR, at a 99% confidence level?

The two dimensions of a risk occurrence are

Is it true that:

EUR/GBP spot is currently 0.7000, has a 30 day standard deviation of 8%, and can be assumed to be normally distributed. At a confidence level of 95%, EUR 7 million due to be received in 30 days will be worth at least GBP million: