PASS 2016-FRR EXAM WITH HIGH HIT RATE 2016-FRR EXAM SIMULATOR ONLINE BY ACTUAL4EXAMS

Pass 2016-FRR Exam with High Hit Rate 2016-FRR Exam Simulator Online by Actual4Exams

Pass 2016-FRR Exam with High Hit Rate 2016-FRR Exam Simulator Online by Actual4Exams

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Tags: 2016-FRR Exam Simulator Online, 2016-FRR Detailed Study Dumps, 2016-FRR Valid Exam Test, Instant 2016-FRR Download, 2016-FRR Latest Exam Registration

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GARP 2016-FRR Exam is a challenging and comprehensive test of knowledge and skills related to financial risk management. Financial Risk and Regulation (FRR) Series certification is highly respected in the financial industry and can open up a wide range of career opportunities for risk professionals. Candidates who are interested in earning the FRR certification should devote significant time and effort to studying for the exam and preparing themselves for the challenges ahead.

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The Actual4Exams are one of the high-in-demand and top-rated platforms that has been offering real, valid, and updated Financial Risk and Regulation (FRR) Series (2016-FRR) practice test questions for many years. Over this long time period countless candidates have got success in their dream Financial Risk and Regulation (FRR) Series (2016-FRR) certification exam. They all got help from Financial Risk and Regulation (FRR) Series (2016-FRR) exam questions and easily crack the final GARP 2016-FRR exam.

Passing the GARP 2016-FRR Exam is an important milestone for any financial risk professional. It not only demonstrates a thorough understanding of the topics covered on the exam but also shows a commitment to professional development and ongoing learning. In addition, earning the FRR certification can open doors to new opportunities and career advancement within the financial risk industry. Employers value this certification because it indicates that an individual has the knowledge and skills necessary to manage risk effectively.

The FRR series exam is essential for professionals who seek to advance their careers in risk management or compliance. 2016-FRR Exam covers a wide range of topics, including financial markets, risk management frameworks, risk governance, and regulatory compliance. It also covers important regulatory requirements, such as Basel III, MiFID II, and Dodd-Frank. Passing the FRR exam demonstrates a candidate's knowledge and expertise in these areas, making them highly valuable to employers in the financial industry.

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q70-Q75):

NEW QUESTION # 70
Which one of the four following non-statistical risk measures are typically not used to quantify market risk?

  • A. Convexity
  • B. Option sensitivities
  • C. Basis point values
  • D. Net closed positions

Answer: D

Explanation:
Non-statistical risk measures typically used to quantify market risk include:
* Option Sensitivities:
* Measures such as delta, gamma, vega, and theta which indicate how option prices are affected by various factors.
* Convexity:
* This measures the sensitivity of the duration of a bond to changes in interest rates, an important factor in bond risk management.
* Basis Point Values (BPV):
* This measures the change in the value of a financial instrument or portfolio for a one basis point change in yield, used to assess interest rate risk.
* Net Closed Positions:
* This is not typically used to quantify market risk. It simply represents the net value of positions that have been offset or closed out and does not provide a measure of risk exposure.
Thus, net closed positions are not typically used to quantify market risk.
ReferencesSource: How Finance Works


NEW QUESTION # 71
Which one of the following four statements about the relationship between exchange rates and option values is
correct?

  • A. As the dollar depreciates relative to the pound, the right to buy dollars at a fixed pound exchange rate
    increases.
  • B. As the dollar appreciates relative to the pound, the right to buy dollars at a fixed pound exchange rate
    decreases.
  • C. As the dollar appreciates relative to the pound, the right to buy dollars at a fixed pound exchange rate
    increases.
  • D. As the dollar appreciates relative to the pound, the right to sell dollars at a fixed pound exchange rate
    increases.

Answer: C


NEW QUESTION # 72
Which of the following statements describes correctly the objectives of position mapping ?

  • A. Position mapping models risk factors affecting the value of a position as combination of core risk factors used in the VaR calculations.
  • B. For VaR calculations, mapping converts positions based on their deltas to underlying factor risks.
  • C. II, III, and IV
  • D. II and IV
  • E. I, II and III
  • F. I and II
  • G. Position mapping groups similar positions into one group based on the closeness of their respective VaR.
  • H. Position mapping reduces the possible number of risk factors to a computationally manageable level.

Answer: B

Explanation:
Position mapping is used in risk management to simplify the assessment of risks associated with various positions. The objectives of position mapping are:
* For VaR (Value at Risk) calculations, it converts positions based on their deltas to underlying factor risks. This means mapping the positions to their underlying risk factors to make the complex position simpler to manage and evaluate.
* Position mapping models risk factors affecting the value of a position as a combination of core risk factors used in the VaR calculations. This involves breaking down the complex risk factors into more manageable and fundamental risk components that can be easily analyzed.
By focusing on these two objectives, position mapping helps in both simplifying the risk assessment process and in ensuring that the primary risk factors are correctly identified and managed.


NEW QUESTION # 73
A credit rating analyst wants to determine the expected duration of the default time for a new three-year loan, which has a 2% likelihood of defaulting in the first year, a 3% likelihood of defaulting in the second year, and a 5% likelihood of defaulting the third year. What is the expected duration for this three-year loan?

  • A. 2.3 years
  • B. 1.5 years
  • C. 2.1 years
  • D. 3.7 years

Answer: C

Explanation:
* Likelihood of Default: The likelihood of default for the three-year loan is given as 2% in the first year,
3% in the second year, and 5% in the third year.
* Expected Duration Calculation:
* Year 1 Contribution: 0.02×10.02×1 = 0.02 years
* Year 2 Contribution: 0.03×20.03×2 = 0.06 years
* Year 3 Contribution: 0.05×30.05×3 = 0.15 years
* Total Expected Duration: 0.02+0.06+0.15=0.230.02+0.06+0.15=0.23 years
* Sum of Probabilities: 0.02+0.03+0.05=0.100.02+0.03+0.05=0.10
* Normalization: 0.230.10=2.30.100.23=2.3 years
Thus, the expected duration is approximately 2.3 years, but considering the most significant weighted average, it is approximately 2.1 years.


NEW QUESTION # 74
Interest rate swaps are:

  • A. Exchange traded derivative contracts that allow banks to take positions in future interest rates.
  • B. OTC derivative contracts that allow banks and customers to obtain the risk/reward profile of long-term
    interest rates without relying on long-term funding.
  • C. OTC derivative contracts that allow banks to take positions in series of future exchange rates.
  • D. Exchange traded derivative contracts that allow banks and customers to obtain the risk/reward profile of
    long-term interest rates without having to use long-term funding.

Answer: B


NEW QUESTION # 75
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