V1_FRM一级习题(风险管理基础).pdfVIP

FOUNDATION OF RISK MANAGEMENT 1. Financial risk management: A. seeks to eliminate all financial risks. B. only focuses on managing market-related financial risks. C. is the process of reacting to financial losses in order to minimize losses. D. Is the process of detecting, assessing, and managing financial risks. 2. The risk of sustaining significant losses due to the inability to take or exit a position at a fair price is most likely: A. market risk B. liquidity risk C. operational risk D. credit event risk 3. Risk management to reduce the probability of financial distress: A. always increases firm value B. can increase firm value because financial distress has measurable costs C. is easily replicated by individual shareholders D. cannot reduce the weighted average cost of capital 4. Which of the following strategies may increase firm value? I. Reducing the potential costs of financial distress and bankruptcy. II. Reducing the weighted average cost of capital. III. Improving management incentives. IV. Reducing information asymmetries. A. Ⅰ and II only B. Ⅰ and Ⅲ only C. Ⅰ, Ⅱand Ⅳ only D. Ⅰ, Ⅱ, III and IV 5. The role of risk management does NOT involve performing which of the following tasks? A. Make sure that the firm takes greater than the necessary amount of risk. 1 B. Assess all risks faced by the firm. C. Communicate these risks to risk-taking decision makers. D. Monitor and manage these risks. 6. Jim Sheehan manages a diversified portfolio containing forty stocks. The portfolio beta is 1.05. Jim is considering adding the stock of ABC Inc. to the portfolio, and would fund the