GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 45 Topic 5 Discussion

GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 45 Topic 5 Discussion

2016-FRR Exam Topic 5 Question 45 Discussion:
Question #: 45
Topic #: 5

Which one of the four following statements about drawdowns is correct?


A.

Drawdown calculates significant losses in a particular business or a book.


B.

Drawdown estimates the effect on bank's liabilities when the bank's credit rating is cut.


C.

Drawdown quantifies the peak-to-trough decline of an investment over a known time period.


D.

Drawdown measures the aggregate decline in market values of assets and positions due to a shock.


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