AIDA 182 (Latest 2023/ 2024 Update) Risk and Insurance Analysis Techniques Exam | Questions and Verified Answers| 100% Correct| Grade A

AIDA 182 (Latest 2023/ 2024 Update) Risk

and Insurance Analysis Techniques Exam |

Questions and Verified Answers| 100%

Correct| Grade A

Q: What is true of diversifiable versus non-diversifiable risk?

Answer:

Diversifiable risks are not correlated and can be managed through diversification or spread of

risk.

Q: A company's fleet of cars is worrying the managers liquidity of the company and fuel prices

having an adverse effect is which type of risk quadrant?

Answer:

Financial risk.

Q: An employee embezzling funds from a company for not feeling adequately paid is what

risk?

Answer:

Both a hazard and an operational risk.

Q: Failing to respond to changing customer demands is an example of what risk?

Answer:

Strategic risk.


Q: The fear of your home being hit by a storm and damaged or destroyed is what risk for you?

Answer:

A subjective risk.

Q: What quadrant of risk is a harmful chemical found in a building with unknown harm to

residents and to the clean up crew part of?

Answer:

A hazard risk.

Q: Driving instead of flying because of feeling of safety is an example of what?

Answer:

A subjective risk.

Q: Investing money in a rental property brings what?

Answer:

Both speculative and pure risks. The property values can increase or decrease and the building

could burn down.

Q: Increased competition is an example of what?

Answer:

A strategic risk.


Q: Renovating a warehouse, purchasing a new order processing software, added two new

delivery trucks, and purchasing a production machine which also allows for potential for a new

product line, are all projects. Which project is the most speculative?

Answer:

The new production machine.

Q: What is a true statement on the basic measures applying to risk management?

Answer:

Consequences measure the degree to which an occurrence could positively or negatively affect

an organization.

Q: The law of large numbers states as the number of exposure units increases, what happens?

Answer:

The relative accuracy of predictions about future losses increase.

Q: Which two measures are important in assessing risk and how to manage it?

Answer:

Consequences and likelihood.

Q: What is the measure of the biggest potential loss of an occurrence.

Answer:

An exposure.


Q: Giving discounts to everyone in one segment of your book of business or a bank in the same

town as a business it gives loans to including its employees, are both examples of high

correlation. What is true about correlation?

Answer:

When two variables are perfectly positively correlated, one variable increases, and the other will

increase in direct proportion.

Q: Covariance is different from correlation in that correlation represents how strongly variables

are related. Covariance is the measure of correlation. Therefore, covariance is what?

Answer:

The measure of the extent to which variables move together or independently.

Q: You own common stock of five large clothing brands. What would improve the portfolios

risk the greatest?

Answer:

Adding a discount retailer stock, not a smaller clothing brand.

Q: What is true of correlation analysis?

Answer:

Abnormal observations and inaccurate data may skew the analysis.

Q: Stock A and B are correlated by 0.80 while stock A and C are correlated by 0.10. Which

portfolio would produce the lowest risk?

Answer:

Portfolio with stock A and C.


No comments found.
Login to post a comment
This item has not received any review yet.
Login to review this item
No Questions / Answers added yet.
Price $12.00
Add To Cart

Buy Now
Category Exams and Certifications
Comments 0
Rating
Sales 0

Buy Our Plan

We have

The latest updated Study Material Bundle with 100% Satisfaction guarantee

Visit Now
{{ userMessage }}
Processing