CIMA Exam CIMAPRO19-P03-1 Topic 5 Question 56 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 56
Topic #: 5

Which method of quantifying risk exposure can be used to calculate the maximum loss on a portfolio occurring within a period of time with a given probability?

AValue at Risk

BRegression analysis

CSimulation

DExpected value

Show Suggested Answer

Suggested Answer: B, E, F

by Jess at Oct 21, 2023, 02:17 AM

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Annalee

2 months ago

I was tempted by the simulation option, but Value at Risk is clearly the best answer. It's the industry standard for this type of risk analysis.

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Luisa

8 days ago

Regression analysis and Expected value are important too, but Value at Risk is the most widely used method for calculating maximum loss.

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Starr

10 days ago

Simulation may seem tempting, but Value at Risk is the industry standard for a reason.

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Lucia

17 days ago

I agree, Value at Risk is definitely the way to go for quantifying risk exposure.

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Dominga

2 months ago

Value at Risk is the way to go. Anything else would be like trying to hit a home run with a toothpick - it's just not the right tool for the job.

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Jenifer

2 months ago

I agree, Value at Risk is the correct answer here. Regression analysis, simulation, and expected value are not designed to calculate maximum loss with a given probability.

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Brinda

16 days ago

Yes, Value at Risk is used to calculate maximum loss with a given probability.

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An

17 days ago

I agree, Value at Risk is the correct answer.

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Zoila

1 months ago

I think the answer is A) Value at Risk.

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Yan

2 months ago

I'm leaning towards option A as well. Value at Risk is a widely used technique in the financial industry for measuring and managing portfolio risk.

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Jaime

1 months ago

Regression analysis might be useful too, but I think Value at Risk is more widely used.

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Linn

1 months ago

I'm not sure, I think simulation could also be a good method for calculating maximum loss.

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Timmy

1 months ago

I agree, Value at Risk is commonly used in the financial industry for managing portfolio risk.

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Gilma

1 months ago

I think option A, Value at Risk, is the best method for quantifying risk exposure.

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Tamala

2 months ago

Value at Risk seems like the most appropriate method to calculate maximum loss with a given probability. The question is asking specifically about quantifying risk exposure.

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