GARP 2016-FRR Authorized Exam Dumps - 2016-FRR Valid Test Vce Free

BTW, DOWNLOAD part of Actual4dump 2016-FRR dumps from Cloud Storage: https://drive.google.com/open?id=1_-bb3hvtGJeIWd7VzbFbVNd-VNGQvzw3

Choosing our GARP vce dumps means you can closer to success. We have rich experienced in the real questions of 2016-FRR actual test. Our 2016-FRR vce files are affordable, latest and best quality with detailed answers and explanations, which can overcome the difficulty of real exam. You will save lots of time and money with our 2016-FRR Braindumps Torrent.

The FRR Series is comprised of three levels - Level I, Level II, and Level III. Each level builds upon the previous one and covers a wide range of topics, including risk management frameworks, market risk, credit risk, operational risk, liquidity risk, and regulatory compliance. 2016-FRR Exams are computer-based and are administered at testing centers around the world.

>> GARP 2016-FRR Authorized Exam Dumps <<

2016-FRR Valid Test Vce Free, Latest 2016-FRR Test Cram

The format name of GARP 2016-FRR practice test questions is GARP PDF Questions file, desktop practice test software, and web-based practice test software. Choose the nay type of Financial Risk and Regulation (FRR) Series 2016-FRR Practice Exam Questions that fit your 2016-FRR exam preparation requirement and budget and start preparation without wasting further time.

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q305-Q310):

NEW QUESTION # 305
A corporate bond gives a yield of 6%. A same maturity government bond yields 2%. The probability of the corporate bond defaulting is 2.5%. In case of default, investors expect to lose 60% of their investment. The risk premium in the credit spread is:

A. 0.5%
B. 1.5%
C. 4.5%
D. 2.5%

Answer: C

Explanation:
To determine the risk premium, we first calculate the credit spread. The yield difference between the corporate bond and the government bond gives the credit spread: Corporate bond yield = 6% Government bond yield =
2%
Credit spread = Corporate bond yield - Government bond yield Credit spread = 6% - 2% = 4%.
Next, we account for the expected loss. The expected loss is the probability of default times the loss given default: Probability of default = 2.5% Loss given default = 60% Expected loss = 0.025 * 0.60 = 0.015 or 1.5%.
Risk premium = Credit spread - Expected loss Risk premium = 4% - 1.5% = 2.5%.
Therefore, the risk premium included in the credit spread is 2.5%.

NEW QUESTION # 306
The risk management department of VegaBank wants to set guidelines on commodity carry trades. Which of the following strategies should she pursue to achieve a profitable commodity carry?
I. Buy short-term commodity futures and sell longer-dated position when the curve is in contango.
II. Buy short-term commodity futures and sell longer-dated position when the curve is in backwardation.
III. Buy long-term commodity futures and sell shorter-dated positions when the curve is in contango.
IV. Buy long-term commodity futures and sell shorter-dated positions when the curve is in backwardation.

A. I, IV
B. II, IV
C. I, II
D. I, III

Answer: A

Explanation:
To achieve a profitable commodity carry trade, the strategy should align with the market conditions represented by the shape of the futures curve. The key concepts are contango and backwardation:
* Contango:
* Contango occurs when the futures prices are higher than the spot prices.
* To profit from contango, one should buy short-term futures contracts (which are cheaper) and sell long-term futures contracts (which are more expensive).
* Backwardation:
* Backwardation occurs when the futures prices are lower than the spot prices.
* To profit from backwardation, one should buy long-term futures contracts (which are cheaper) and sell short-term futures contracts (which are more expensive).
Given the statements:
* I. Buy short-term commodity futures and sell longer-dated position when the curve is in contango.
* IV. Buy long-term commodity futures and sell shorter-dated positions when the curve is in backwardation.
Both these strategies align with the correct market conditions for profitable trades.
ReferencesSource: How Finance Works

NEW QUESTION # 307
Which of the following attributes are typical for early models of statistical credit analysis?

A. These models effectively incorporated herd behavior.
B. These models assumed the default of any obligor was independent of the default of any other.
C. The underlying default assumptions failed to develop relatively simple formulas for the determination of portfolio credit risk.
D. The underlying default assumptions were analytically inconvenient.

Answer: A

Explanation:
Early models of statistical credit analysis typically operated under the assumption that the default of any given obligor was independent of the default of any other. This simplification made the models more tractable but less realistic, as it did not account for potential correlations between defaults (e.g., economic downturns affecting multiple obligors simultaneously).

NEW QUESTION # 308
The probability of default on a bond is 3%, and in the case of default, investors expect to lose 70% of their
investment. The bond's risk premium is 1.9%. The expected loss and the credit spread of the bond are,
respectively:

A. 1.6% and 3.5%.
B. 2.1% and 3%.
C. 2.1% and 4%.
D. 1.6% and 2.5%.

Answer: C

NEW QUESTION # 309
A hedge fund trader buys options to establish an exposure in the currency market, thereby effectively removing the risk of being able to participate in a gapping market. In this case the options premium represents the price paid for eliminating the execution risk of

A. The gamma-hedging strategy.
B. The delta-hedging strategy.
C. The vega-hedging strategy.
D. The theta-hedging strategy.

Answer: B

Explanation:
In the context of options trading, delta hedging involves managing the delta (rate of change of the option's price with respect to changes in the underlying asset's price) to be neutral.
* Options premium: Represents the cost paid to eliminate execution risk associated with sudden market moves (gapping markets).
* Execution risk: The risk of being unable to adjust positions quickly enough in response to market changes.
By purchasing options, the trader removes the risk of needing to adjust a delta-neutral position during large market movements. The premium paid is the cost of this protection.
References
Source: How Finance Works

NEW QUESTION # 310
......

There are rare products which can rival with our products and enjoy the high recognition and trust by the clients like our products. Our products provide the 2016-FRR study materials to clients and help they pass the test 2016-FRR certification which is highly authorized and valuable. Our company is a famous company which bears the world-wide influences and our 2016-FRR Study Materials are recognized as the most representative and advanced study materials among the same kinds of products.

2016-FRR Valid Test Vce Free: https://www.actual4dump.com/GARP/2016-FRR-actualtests-dumps.html

P.S. Free & New 2016-FRR dumps are available on Google Drive shared by Actual4dump: https://drive.google.com/open?id=1_-bb3hvtGJeIWd7VzbFbVNd-VNGQvzw3

Caleb Davis Caleb Davis

Biography

GARP 2016-FRR Authorized Exam Dumps - 2016-FRR Valid Test Vce Free

2016-FRR Valid Test Vce Free, Latest 2016-FRR Test Cram

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q305-Q310):

Quick links

categories

Contact us

info@himilocoding.com

07325465226

24/7