WorksheetsACC5044-Week 6
Total questions: 24
Worksheet time: 24mins
What rights does the General Data Protection Regulation (GDPR) provide to EU citizens?
The right of rectification, the right of portability, the right to be forgotten, and the right to restriction of profiling.
The right to data transparency, the right to data security, the right to data minimization, and the right to object to data processing.
The right to data access, the right to data correction, the right to data deletion, and the right to data portability.
The right to data accuracy, the right to data integrity, the right to data retention, and the right to data restriction.
What was the reason for the fine imposed on a leading insurer in the United Kingdom by the Financial Conduct Authority (FCA) in October 2018?
Misuse of customer data
Poor oversight of a third-party supplier
Unauthorized data sharing
Lack of data encryption
What are the three main categories of data according to the image?
Personal data, sensitive data, and public data
Structured data, semi-structured data, and unstructured data
Known knowns, known unknowns, and unknown unknowns
Quantitative data, qualitative data, and mixed-method data
Which category of data includes information that we are aware of and can validate, such as a person's name and address?
Known knowns
Known unknowns
Unknown unknowns
Sensitive data
What are "known unknowns" in the context of data?
Data that are created without our knowledge and cannot be validated
Data that arise from people's activities and are recorded by various digital platforms
Data that are completely anonymous and cannot be traced back to an individual
Data that are used by companies to create digital profiles without consent
What are "unknown unknowns" according to the text?
Data that are created with our knowledge and can be easily validated
Data that are generated by companies using eye tracking and gesture tracking
Data that are created without our knowledge and we have few opportunities to validate
Data that are publicly available and can be used by anyone
How much more quickly are asset managers who embrace big data and analytics growing their revenue compared to the rest of financial services?
0.5 times more quickly
1.5 times more quickly
2 times more quickly
2.5 times more quickly
What applications in asset management are mentioned in the text where AI is applied?
Risk management and beta generation
Risk management and alpha generation
Alpha management and beta generation
Data management and risk generation
What is the limitation of conventional risk models as mentioned in the text?
They assume markets behave in non-linear relationships
They are unable to model complex risks and carry out stress tests
They assume markets behave in linear relationships and can model complex risks
They use AI to carry out stress tests beyond business-as-usual scenarios
What is the primary goal of Customer Relationship Management (CRM)?
To provide personalized experiences to customers
To analyze vast amounts of data
To improve business relationships with customers, assist in customer retention, and drive sales growth
To predict customer behavior based on past interactions
How can AI significantly augment CRM?
By providing real-time approvals and reducing false positive results
By executing trades in financial markets
By analyzing past behaviors, preferences, and interactions to tailor communications and offers
By relying on heavy historical credit data
What has been a traditional issue with fraud detection methods used by banks?
They are too efficient and reduce human jobs
They capture a large percentage of fraud cases but have a high percentage of false positives
They capture only a small percentage of fraud cases and produce a high percentage of false positives
They are fully automated and do not require human intervention
What is algorithmic trading also known as?
CRM trading
Black-box trading
Fraud detection trading
Credit scoring trading
What is the advantage of machine-learning algorithms in fraud detection?
They can execute trades with speed and efficiency
They can analyze millions of data points to detect fraudulent transactions
They rely on heavy historical credit data
They provide personalized experiences to customers
What is the main goal of text and data mining algorithms in finance?
To conduct online interviews
To categorize potential employees
To discover relationships and find patterns in data
To extract user emotions from text
What is sentiment analysis also known as?
Opinion mining
Data extraction
Trend analysis
Character bucketing
What is the main goal of information extraction systems?
To screen job applicants
To identify objects and structure relevant data into meaningful information
To optimize training effects for AI systems
To assess candidates' performance based on different traits
Which of the following is NOT a prime source for text sentiment analysis?
Blogs
Social media sites
E-mails
Financial statements
What is the main concern of natural language processing?
Data classification
Human-computer interaction
Credit rating
Loan default prediction
What has caused a substantial change in the financial industry according to the text?
Credit evaluation
Machine learning and information technology
Neural networks
Money laundering
What new and emerging technique is crucial to increase the efficiency of the credit rating process, considering variety of data types generated?
Predictive analytics
Data mining
Neural networks
Logistic regression models
What can stock prediction technology be used for in financial markets?
To make qualitative decisions
To predict weather patterns
To calculate interest rates
To assess real estate values
Why is making accurate assessments in the stock market complicated?
Because of the fluctuations in the stock market
Because of the constant stability in the stock market
Because of the predictable nature of stocks
Because of the lack of technology
What has given researchers a good reason to place significant efforts into bettering the ability to predict stocks?
The simplicity of the stock market
The desire to reduce qualitative decisions
The complications due to fluctuations in the stock market
The lack of interest in financial markets
