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NEW QUESTION: 1
Section A (1 Mark)
Which of the following measures is lowest for a currently callable bond?
A. Modified duration.
B. None of the Above
C. Effective duration.
D. Macaulay duration.
Answer: C

NEW QUESTION: 2
You are the risk official at Bluewell Inc. There are some risks that are posing threat on your enterprise. You are measuring exposure of those risk factors, which has the highest potential, by examining the extent to which the uncertainty of each element affects the object under consideration when all other uncertain elements are held at their baseline values. Which type of analysis you are performing?
A. Cause-and-effect analysis
B. Fault tree analysis
C. Sensitivity analysis
D. Scenario analysis
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Sensitivity analysis is the quantitative risk analysis technique that:
Assist in determination of risk factors that have the most potential impact

Examines the extent to which the uncertainty of each element affects the object under consideration

when all other uncertain elements are held at their baseline values
Incorrect Answers:
B: Fault tree analysis provides a systematic description of the combination of possible undesirable occurrences in a system. It does not measure the extent of uncertainty.
C: Cause-and-effect analysis involves the use of predictive or diagnostic analytical tool for exploring the root causes or factors that contribute to positive or negative effects or outcomes, and not the extent of uncertainty.
D: Scenario analysis provides ability to see a range of values across several scenarios to identify risk in specific situation. It provides ability to identify those inputs which will provide the greatest level of uncertainty. But it plays no role in determining the extent of uncertainty.

NEW QUESTION: 3
Which two statements are true regarding absence qualification plans?
A. Employees are enrolled into plans when the Update Accrual plan Enrollments process is run.
B. They perform enrollments automatically during hiring.
C. They determine entitlements that employee are eligible for.
D. They calculate entitlement usages when an absence is recorded.
Answer: C,D