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PRMIA Exam 8010 Topic 1 Question 41 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 41
Topic #: 1
[All 8010 Questions]

Which of the formulae below describes incremental VaR where a new position 'm' is added to the portfolio? (where p is the portfolio, and V_i is the value of the i-th asset in the portfolio. All other notation and symbols have their usual meaning.)

A)

B)

C)

D)

Show Suggested Answer Hide Answer
Suggested Answer: C

For EVT, we use the block maxima or the peaks-over-threshold methods. These provide us the data points that can be fitted to a GEV distribution.

Least squares and maximum likelihood are methods that are used for curve fitting, and they have a variety of applications across risk management.


by Simona at Feb 12, 2024, 12:46 AM

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Jolene
1 months ago
I wonder if the exam writer is a fan of calculus. This is getting a little too derivative for my liking!
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Lavera
6 days ago
I think the answer is B) Option B
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Dylan
1 months ago
Wait, is this a trick question? I bet the answer is 'all of the above' and they're just trying to trip us up!
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Mignon
13 days ago
I'm going with Option B as the answer
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Renea
15 days ago
No, I believe the correct answer is Option C
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Dorthy
19 days ago
I think the answer is Option A
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Leslie
2 months ago
Option D looks promising, but I don't want to jump to conclusions. Gotta work through this step-by-step.
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Belen
24 days ago
Option D does seem like a strong contender, but we shouldn't rush our evaluation process.
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Lynelle
30 days ago
I agree, we should take our time to understand the implications of each formula.
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Frederic
1 months ago
Let's analyze each option carefully before making a decision.
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Sherita
2 months ago
Hmm, I'm not sure about this one. I'll have to review my notes on incremental VaR.
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Paul
25 days ago
Let's review our notes together to figure out the correct formula for incremental VaR.
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Eliz
1 months ago
I'm not sure, I need to double-check my notes on this topic.
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Demetra
1 months ago
No, I believe it's actually in Option D.
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Virgina
2 months ago
I think the formula for incremental VaR is in Option C.
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Sommer
2 months ago
This looks like a tricky question. I'm going to need to think it through carefully.
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Yuki
1 months ago
I agree, Option C seems to be the correct choice.
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Arlene
1 months ago
I think the answer is Option C.
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Pok
2 months ago
Why do you think it's C?
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Jannette
3 months ago
I disagree, I believe the correct answer is C.
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Pok
3 months ago
I think the answer is B.
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