Practice Quiz

FRM Financial Risk Manager Practice Test - Question List

Select how would you like to study

Study Mode Free Daily Question Test Mode
76. Which of the following can you use a Monte Carlo simulation to model? Select all that apply:
  1. Cost.
  2. Probability of success.
  3. Project duration.
  4. Quality of inputs.
  5. Stock returns.
See answer
77. Which of the following could be an example of hedging? Select all that apply:
  1. Buying futures on oil.
  2. Hiring a strategy consultant.
  3. Protecting against fluctuating exchange rates.
  4. Changing back-office processors.
  5. All of the above.
See answer
78. A problem with risk management at large firms is that it is often:
  1. Completely ignored.
  2. Siloed.
  3. Too frequent.
  4. Too aggressive.
  5. All of the above.
See answer
79. The word leveraged in the term leveraged buyout (LBO) refers to what?
  1. Pressure from the board of directors.
  2. Debt.
  3. Equity.
  4. Poor strategic position of targeted company.
  5. Inclined plane.
See answer
80. True or false: Leveraged buyouts (LBOs) are not collateralized.
  1. True
  2. False
See answer

Select how would you like to study

Study Mode Free Daily Question Test Mode