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Financial Risk Management Test

Topics Covered

  • Capital Budgeting
  • Risk and Return
  • Beta
  •  VaR
  • Types of Risk
  • Systematic and Unsystematic Risk
  • Unexpected Loss
  • Hedging

Useful for hiring

  • Risk Management Officer
  • Risk Management Analyst
  • Finance Risk Manager
  • Financial Risk Analyst
  • Financial Risk Management Consultant

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Question

PWC ltd. has evaluated two projects and the following information is available to the company:

Particular Project A Project B
IRR 10% 14%
NPV -80,000 400,000

Which of the following statements regarding the discount rate used to calculate the NPV is correct?

Answer
    • The discount rate is less than 10%
       

    • The discount rate is greater than 14%
       

    • The discount rate is between 10% and 14%
       

    • The discount rate is equal to 14%
       

Question

The risk-free return in the market is 6%. An investment option is available that pays 12% with a probability of 40% and 2% with a probability of 60%. Will a risk averse investor invest in this portfolio?

Answer
    • Yes, because he will be rewarded for the extra risk
       

    • No, because he will not be rewarded for the extra risk
       

    • No, because the risk premium is not enough
       

    • Limited data, cannot be determined
       

Question

Mix Plants Ltd. common stock has a beta of 0.9. The risk-free rate is 6%, and the expected return on the market is 10%. Based on this information and the CAPM concept, what will be the required return on Mix Plants’ stock?

Answer
    • 0.096
       

    • 0.15
       

    • 0.04
       

    • 0.046
       

Test details:

Financial risk management skills test enables employers and recruiters to identify potential hires by evaluating working skills and job readiness. Online financial risk management test can be taken by candidate from anywhere in the comfort of their time zone.

Financial risk management quiz may contain MCQ's (Multiple Choice Questions), MAQ's (Multiple Answer Questions), Fill in the Blank, Descriptive, Whiteboard Questions, Audio / Video Questions, True or False.

Test Duration: 20 minutes

10 Application Questions

Test description:

Financial risk management is the process of identification, analysis and acceptance or mitigation of uncertainty in investment decisions. Risk management mainly occurs when an investor or fund manager analyses and attempts to quantify the potential for losses in an investment and then take the appropriate action or inaction by giving the investment objectives and risk tolerance. Financial risk management requires identifying its sources, measuring it, and plans to address them. Financial analyst works mainly in 4 major risk categories such as credit, operational, regulatory and market risk.

Financial risk management test helps recruiters & hiring managers to evaluate the candidate’s ability to assess risks and implement plans and strategies to minimize business losses. Financial risk management online test is designed by experienced subject matter experts (SMEs) to assess and hire financial risk analyst as per the industry standards.

Financial risk management assessment test helps to screen the candidates who possess traits as follows:

1.  Strong Knowledge of liquidity risk measurement, reporting, and management
2.  Familiarity with different types of risks like market risk, regulatory risk & risk regulatory framework
3.  Ability to work on functional design and data modeling for risk management systems and applications
4.  Excellent knowledge in VaR, PFE, Expected Shortfall etc.
5.  Ability to use statistical computer programming
 
Financial risk management test has powerful reporting feature which will help you get instant results and an option to share these results with your recruiting team. You can use our role-based access control feature to restrict system access based on the roles of individual users within the recruiting team. Features like window violation and webcam proctoring help detect cheating during the test.

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  • credit suisse
  • sephora
  • nielsen
  • capgemini
  • akamai

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