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QUESTION 18 Which of the following is correct about stress testing? It is used to evaluate the potential impact on portfolio values of unlikely, extreme
QUESTION 18 Which of the following is correct about stress testing? It is used to evaluate the potential impact on portfolio values of unlikely, extreme events or movements in a set of financial variables. It is a risk management tool that directly compares predicted results to observed actual results. Predicted values are also compared with historical data. Both a) and b) above are true. None of the above are true.
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