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PRMIA Exam 8010 Topic 8 Question 65 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 65
Topic #: 8
[All 8010 Questions]

Which of the following credit risk models relies upon the analysis of credit rating migrations to assess credit risk?

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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 Mireya at Jan 09, 2025, 05:49 PM

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Catalina
2 months ago
The contingent claims approach? More like the 'contingent on me passing this exam' approach!
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Denny
13 days ago
I know, right? Let's hope we both pass!
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Odette
17 days ago
Haha, good one!
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Sanjuana
21 days ago
D) The contingent claims approach
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Lashon
1 months ago
C) The actuarial approach
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Kirk
1 months ago
B) The CreditMetrics approach
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Mickie
1 months ago
A) KMV's EDF based approach
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Luisa
2 months ago
KMV's EDF based approach? That's like the Michael Keaton of credit risk models - good, but not the best.
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Meghann
23 days ago
D) The contingent claims approach
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Lynelle
25 days ago
C) The actuarial approach
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Santos
30 days ago
B) The CreditMetrics approach
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Bo
1 months ago
A) KMV's EDF based approach
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Cristy
2 months ago
The actuarial approach? Sounds like something my grandpa would use. This is the 21st century, folks!
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Carol
15 days ago
User 4: The CreditMetrics approach is also a good option.
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Estrella
22 days ago
User 3: I prefer the KMV's EDF based approach.
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Ilona
27 days ago
User 2: I agree, we need more modern methods.
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Demetra
1 months ago
User 1: I think the actuarial approach is outdated.
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Romana
2 months ago
B) The CreditMetrics approach
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Alpha
2 months ago
A) KMV's EDF based approach
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Hortencia
3 months ago
Oh man, I was totally confused between the CreditMetrics and the contingent claims approach. Gotta study up on those credit risk models!
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Bobbye
3 months ago
I'm not sure, but I think CreditMetrics approach also considers credit rating migrations.
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Colby
3 months ago
I agree with Mica, KMV's EDF based approach analyzes credit rating migrations.
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Benedict
3 months ago
The CreditMetrics approach sounds like the right answer here. It's all about analyzing credit rating migrations to assess credit risk.
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Ahmed
1 months ago
The contingent claims approach is more focused on option pricing rather than credit rating migrations.
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Estrella
2 months ago
The actuarial approach may not rely heavily on credit rating migrations.
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Marisha
2 months ago
I think KMV's EDF based approach also considers credit rating migrations.
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Ashton
2 months ago
I agree, the CreditMetrics approach is focused on credit rating migrations.
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Mica
3 months ago
I think the answer is A) KMV's EDF based approach.
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