NACVA Exam CVA Topic 2 Question 59 Discussion

Actual exam question for NACVA's CVA exam

Question #: 59
Topic #: 2

[All CVA Questions]

_____________________ is the uncertainty of future returns resulting from the sensitivity of the return on the subject investment to movements in the return on the investment market as a whole.

AUnsystematic risk

BSystematic risk

CEquity-risk premium

DInvestment-specific risk

Show Suggested Answer

Suggested Answer: D

by Chanel at Oct 27, 2022, 11:03 PM

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Emile

6 days ago

Wait, is this a trick question? I was convinced it was A) Unsystematic risk, but now I'm doubting myself. Curse these certification exams and their tricky wording!

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Stephen

10 days ago

Haha, I know this one! It's definitely B) Systematic risk. I can practically hear my finance professor's voice in my head explaining this concept.

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Christoper

16 days ago

Hmm, I'm not sure about this one. I was leaning towards D) Investment-specific risk, but now I'm second-guessing myself. Guess I'll have to review my notes on risk types.

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Hortencia

16 days ago

I'm not sure, but I think it might be A) Unsystematic risk.

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Mila

18 days ago

I think the answer is B) Systematic risk. This sounds like the definition of market risk, which is the risk that the entire market will move up or down, affecting the investment's returns.

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Eden

18 days ago

I agree with Shannan, systematic risk makes sense in this context.

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Shannan

20 days ago

I think the answer is B) Systematic risk.

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