Free GARP FRM-Part-1 Exam Questions

One of the basic requirements of a risk control process that a risk and control selfassessment program (RCSA) fails in is the:

The board of directors of a growing asset management company is conducting a review of the firm’s approach to risk management. The board concludes that the firm should establish an ERM framework. Which of the following represents a key benefit that the firm will likely attain after establishing an ERM framework?

A newly hired quantitative analyst at a financial institution has been asked by a portfolio manager to calculate the VaR of a portfolio for 10-, 15-, 20-, and 25-day periods. The portfolio manager notices something wrong with the analyst’s calculations. Assuming the annualized volatilities of daily returns for the four periods are equal, and that the daily returns are independently and identically normally distributed with a mean of zero, which of the following VaR estimates for this portfolio is inconsistent with the others?

At-the-point approaches tend to be:

An analyst is currently considering a portfolio consisting of two stocks. The first stock, Remba Co., has an expected return of 12% and a standard deviation of 16%. The second stock, Labs, Inc., has an expected return of 18% and a standard deviation of 25%. The correlation of returns between the two securities is 0.25.If the analyst forms a portfolio with 30% in Remba and 70% in Labs, what is the portfolio's expected return?