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SAP Exam C_S4FTR_2023 Topic 8 Question 3 Discussion

Actual exam question for SAP's C_S4FTR_2023 exam
Question #: 3
Topic #: 8
[All C_S4FTR_2023 Questions]

You are preparing scenarios in Market Risk Analyzer for testing purposes.Which market data can you use to create scenarios?Note: There are 2 correct answers to this question.

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Suggested Answer: A, B

The market data that you can use to create scenarios in Market Risk Analyzer are security prices and yield curves. Market Risk Analyzer is a submodule of Financial Risk Management that allows you to perform market risk analysis for financial transactions and positions based on various scenarios and key figures. A scenario is a set of assumptions about future market conditions that affect the valuation of financial transactions and positions. The market data that you can use to create scenarios in Market Risk Analyzer are security prices, which define the market prices of securities; and yield curves, which define the relationship between interest rates and maturities of debt instruments. Reference: https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/2020_002/en-US/3a3a8f6f7a6e4c2b8d5b8f1e2a2a0d5b.html


by Yolande at Jun 28, 2024, 09:21 AM

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Margart
8 months ago
Default rates? Nah, I prefer to use a magic 8-ball for my market risk scenarios. Much more reliable.
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Elina
8 months ago
Yield curves and correlations, baby! Gotta get that data party started.
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Aleta
8 months ago
Ah, the good ol' security prices and yield curves. Classic combo, just like peanut butter and jelly.
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Cristen
8 months ago
B) Yield curves
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Martina
8 months ago
A) Security prices
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Gayla
8 months ago
Yield curves and default rates, no doubt. Gotta keep those scenarios spicy, am I right?
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Frederica
8 months ago
Correlations? Really? I'd rather use a crystal ball to predict the market.
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Cecily
9 months ago
Security prices and yield curves are definitely the way to go. Gotta love those juicy scenarios!
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Jennie
7 months ago
Definitely, using those market data will give us a comprehensive view of potential risks.
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Una
7 months ago
I agree, they provide a good foundation for testing market risk.
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Shayne
7 months ago
Yes, security prices and yield curves are essential for creating realistic scenarios.
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Carlene
7 months ago
D) Default rates
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Reid
7 months ago
C) Correlations
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Frank
7 months ago
B) Yield curves
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Catalina
8 months ago
A) Security prices
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Giuseppe
9 months ago
I think Reid is right. Correlations and default rates can provide valuable insights for scenario testing.
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Reid
9 months ago
I believe correlations and default rates can also be used to create scenarios.
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Dyan
9 months ago
I agree with Velda. Those two market data are essential for testing Market Risk Analyzer.
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Ammie
9 months ago
A and B, for sure. Gotta have those security prices and yield curves. As for the other options, default rates? What is this, a credit risk exam? *chuckles*
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Carlton
8 months ago
Haha, yeah, default rates seem more like a credit risk thing.
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Shoshana
9 months ago
Yeah, A and B are definitely key for market risk scenarios.
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Lelia
9 months ago
Hmm, I'd go with B and C. Yield curves and correlations are the bread and butter of market risk modeling. Who needs security prices when you have those two covered?
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Arthur
9 months ago
Correlations? Really? I thought that was a given. You can't do proper scenario testing without accounting for how different market factors move together.
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Jess
8 months ago
D) Default rates
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Tess
8 months ago
C) Correlations
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Kris
8 months ago
B) Yield curves
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Moira
8 months ago
A) Security prices
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Anglea
8 months ago
Yes, correlations are crucial for scenario testing.
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Janine
8 months ago
D) Default rates
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Juan
8 months ago
C) Correlations
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Loreta
8 months ago
B) Yield curves
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Corrina
9 months ago
A) Security prices
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Nickolas
9 months ago
Security prices and yield curves are definitely essential for creating market risk scenarios. I'm surprised default rates aren't one of the options though - that's crucial data for credit risk analysis.
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Ngoc
8 months ago
Yes, default rates are more relevant for credit risk analysis. Market risk scenarios usually involve using security prices and yield curves.
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Heike
8 months ago
Default rates are important for credit risk, but for market risk scenarios, we mainly focus on security prices and yield curves.
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Ruthann
8 months ago
D) Default rates
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Skye
8 months ago
C) Correlations
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Tammi
9 months ago
B) Yield curves
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Reena
9 months ago
A) Security prices
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Velda
10 months ago
I think we can use security prices and yield curves for creating scenarios.
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