Risk budgeting is most accurately defined as the process of:
Explanation
Risk budgeting allocates the 'budget' of risk determined by the organization's tolerance to specific components of the portfolio.
Other questions
Which of the following activities is best described as part of risk governance?
Which of the following is classified as a non-financial risk?
Risk shifting is most likely accomplished through the use of:
An organization decides to bear a specific risk itself rather than avoiding or transferring it. This is best described as:
Which of the following is a key assumption of technical analysis?
Technical analysis differs from fundamental analysis in that technical analysis:
In a candlestick chart, a filled (shaded) box (body) indicates that:
According to the principle of change in polarity, once a resistance level is breached, it becomes:
A head-and-shoulders pattern has a neckline at $120 and a head at $150. If the price breaks down through the neckline, the projected price target is:
Which of the following is considered a continuation chart pattern?
A 'golden cross' occurs when:
Bollinger bands are constructed by drawing lines a specific number of standard deviations above and below a:
Using a contrarian strategy with Bollinger bands, an investor would most likely buy when:
The Rate of Change (ROC) oscillator is calculated as:
An RSI value of 85 most likely indicates that the asset is:
In the MACD indicator, the 'signal line' is defined as:
Convergence between an oscillator and market prices suggests that:
Which of the following is considered a sentiment indicator?
A very high put/call ratio indicates strongly bearish investor sentiment. A technical analyst would view this as a:
The VIX measures volatility of options on which underlying index?
Increases in total margin debt are generally viewed by technical analysts as:
Intermarket analysis typically involves analyzing relationships among:
If a relative strength chart of Stock A versus a benchmark Index shows a rising trend, this implies:
A 'top-down' approach to technical analysis would start with:
Which of the following refers to data generated by individuals, such as social media posts and reviews?
The 'velocity' characteristic of Big Data refers to:
In the context of data science, 'curation' involves:
In supervised learning, the algorithm is given:
Overfitting occurs when a machine learning model:
Which application of fintech involves analyzing unstructured data in text or voice forms, such as regulatory filings?
A primary advantage of robo-advisory services is:
A distributed ledger that uses a consensus mechanism to validate new entries and links blocks sequentially is known as:
In a permissionless network using distributed ledger technology:
Tokenization refers to:
Which technical chart type displays the high, low, and closing prices but not necessarily the opening price?
A 'dead cross' is a technical signal indicating:
Smart contracts are best described as:
Which component of risk management involves deciding which risks should be taken and which should be reduced?
Which pattern suggests a pause in a trend rather than a reversal?
The stochastic oscillator consists of two lines, %K and %D. The %D line is:
A period of low volatility where Bollinger bands move closer together is referred to as a:
Which term describes the lag between when data is generated and when it is communicated?
Risk governance requires determining the organization's overall:
Which chart type would be most useful for analyzing the distribution of buyers and sellers over time?
Settlement risk is best classified as a:
Which risk measure includes delta, gamma, vega, and rho?
An uptrend line is constructed by connecting the:
Which type of machine learning involves the computer learning to describe the structure of data without labeled outputs?
Tail risk is most appropriately measured by: