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WorksheetsRisk Management Quiz#4
Total questions: 10
Worksheet time: 17mins
It is the tendency of an investment or market to rise or fall in price within a short period of time.
(a)
____ traders bid up prices on a good news day, while ____ traders drive prices down on bad news.
(a)
It refers to the risk that a lender may not receive the owed principal and interest.
market risk
credit risk
opportunity risk
To assess credit risk on a consumer loan, lenders look at the five Cs.
What are the 5 Cs?
(a)
The higher the volatility, the
riskier the security.
maybe
true
false
What is the investor's reward for assuming credit risk from borrowers?
(a)
It is used to measure the risk of loss on a portfolio of financial assets, or an investment, over a specific period.
(a)
It is the simplest method to
calculate VaR.
(a)
A person who owes money to an investor is called (a) .
VaR helps investors determine what could happen in a worst-case scenario.
It tells them how much they could potentially lose.
maybe
true
false
