PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition 8009 Question # 16 Topic 2 Discussion

PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition 8009 Question # 16 Topic 2 Discussion

8009 Exam Topic 2 Question 16 Discussion:
Question #: 16
Topic #: 2

Which of the following is part of the Group of 30 Report's market risk and stress testing recommendations?


A.

To be consistent with regulatory capital measures, 10-day holding periods should be standardized for VaR reporting


B.

Historic simulations are not effective methods of stress testing


C.

Stress tests should incorporate changes in liquidity


D.

Market risk VaR measures should be multiplied by 3 to get to a stress test figure, as long as the VaR model has been back-tested


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