Question 1 (1Point)

What is the first step in the Risk Management Process?

a	Assess effects of exposures
b	Measure and estimate risk exposures
c	Identify risk exposures
d	Evaluate performance

Question 2 (1 point)

Which risk arises from changes in interest rates, foreign exchange rates or equity and commodity price factors?

a	Operational Risk
b	Credit Risk
c	Market Risk
d	Enterprise Risk

Question 3 (1 point)

OPERATIONAL risk refers to losses from inadequate or failed internal processes, people or systems

True

False

Question 4 (1 point)

Which corporate function is primarily responsible for independent monitoring of limits?

a	Chief Risk Officer (CRO)
b	Business Unit Manager
c	Heads of Business
d	Risk Committee of the Board

Question 5 (1 point)

Who authored the foundations of modern risk analysis?

a	William Sharpe
b	Basel III
c	Amos Tversky
d	Harry Markowitz

Question 6 (1 point)

Which of the following is the theory of how the expected rate of return on a financial asset is determined?

a	Capital Asset Pricing Model
b	The Arbitrage Pricing Theory
c	Portfolio Selection
d	Volatility Index

Question 7 (1 point)

What model is commonly used to price options?

a	The Arbitrage Pricing Theory
b	Weighted Average Cost of Capital
c	Volatility Index
d	Black and Scholes

Question 8 (1 point)

Which of the following bonds have a riskless yield curve?

a	High-grade (AAA) bonds
b	US Treasury bonds
c	Municipal bonds
d	Junk bonds