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Risk Governance
Which of the following statements most accurately describes risk budgeting?
Identification of Risks
Which of the following are considered financial risks?
Identification of Risks
To mitigate risk, a company is taking steps to reduce its debt holdings, and to secure stable sources of financing. This company is most likely mitigating:
Identification of Risks
An individual would buy an annuity to mitigate:
Measuring Risks
Match the type of investment instrument to the most appropriate measure of risk. (Drag and drop)
Fixed income instrument
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Stock in a diversified portfolio
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Stand-alone stock
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Measuring Risks
A bank has a one-month VaR of $50 million, with a 5% probability. What does this mean?
Methods of Risk Modification
Which of the following is the LEAST probable method to mitigate risk for an insurance company?
Methods of Risk Modification
A supermarket chain is evaluating the risks of entering the restaurant industry. After the evaluation, the company decides that the risk of entering the restaurant industry outweighs the benefits it brings to the company. The company should most likely:
Many years ago, I was exactly where you are today—a CFA Level I candidate juggling a demanding full-time career with the daunting CFA curriculum. Coming from a Computer Engineering background, finance was entirely new territory for me. And yes, it was tough!
I struggled with dense textbooks, late-night cramming, and the frustration of concepts that seemed impossible after a long workday. But after passing Level I (barely), I realized something had to change.
Using the Pareto Principle (80/20 rule), I distilled the vast CFA syllabus into essential, easy-to-understand nuggets. I leaned into visual summaries and bite-sized learning sessions that worked around my busy schedule. This smarter approach helped me clear Levels II and III on my first attempts with significantly less stress.
I founded PrepNuggets to share the streamlined strategies and innovative learning methods that transformed my CFA journey. Our mission is simple: leverage technology to make CFA prep more effective, accessible, and enjoyable.
Join the PrepNuggets community today—sign up for your free account, and let our thoughtfully crafted materials propel you toward CFA success without unnecessary overwhelm.
Here’s to your CFA journey!
Keith Tan, CFA
Founder & Chief Instructor, PrepNuggets
Keith is the founder and chief instructor of PrepNuggets. He has a wide range of interests in all things related to tech, from web development to e-learning, gadgets to apps. Keith loves exploring different cultures and the untouched gems around the world. He currently lives in Singapore but frequently travels to share his knowledge and expertise with others.
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