ARM 400 - Segment A - Chapters 1, 2,
& 3 Exam Questions and Answers
100% Pass
Sets of data that are too large to be gathered and analyzed by traditional
methods - ✔✔Big Data
An innovative item that uses sensors; wireless sensor networks; and data
collection, transmission, and analysis to further enable the item to be faster,
more useful, or otherwise improved - ✔✔Smart Product
A network of objects that transmit data to and from each other without
human interaction - ✔✔Internet of Things (IoT)
Information, technology, and storage services contractually provided from
remote locations, through the internet or another network, without a direct
server connection. - ✔✔Cloud Computing
1
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,A distributed digital ledger that facilitates secure transactions without the
need for a third party - ✔✔Blockchain
Text Mining - ✔✔Obtaining information through language recognition
The use of technological devices in vehicles with wireless communication
and GPS tracking that transmit data to businesses or government agencies;
some return information for the driver - ✔✔Telematics
Amount of risk an organization is willing to take on in order to achieve an
anticipated result or return - ✔✔Risk Appetite
A technique to quantify financial risk by measuring the likelihood of losing
more than a specific dollar amount over a specific period of time -
✔✔Value at risk (VaR)
the total cost incurred by an organization because of the possibility of
accidental loss - ✔✔cost of risk
any condition that presents a possibility of gain or loss, whether or not an
actual loss occurs - ✔✔Exposure
Frequent fluctuations, such as in the price of an asset - ✔✔Volatility
2
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,A qualitative estimate of the certainty with which the outcome of a specific
event can be predicted - ✔✔Likelihood
the effects, positive or negative, of an occurrence - ✔✔consequences
Estimated duration - ✔✔Time Horizon
A relationship between variables - ✔✔correlation
a chance of loss or no loss, but no chance of gain - ✔✔pure risk
a chance of loss, no loss, or gain - ✔✔Speculative risk
The risk that customers or other creditors will fail to make promised
payments as they come due - ✔✔Credit Risk
the perceived amount of risk based on an individual's or organization's
opinion - ✔✔Subjective risk
the measurable variation in uncertain outcomes base on facts and data -
✔✔Objective risk
A risk that affects only some individuals, businesses or small groups
3
100% Pass Guarantee Katelyn Whitman, All Rights
, Not highly correlated - gains and losses tend to occur randomly -
✔✔Diversifiable Risk
The potential for a major disruption in the function of an entire market or
financial system - ✔✔Systemic Risk
Uncertainty about an investment's future value because of potential
changes in the market for that type of investment - ✔✔Market Risk
The risk that an asset cannot be sold on short notice without incurring a
loss - ✔✔Liquidity Risk
What are the basic risk measures? - ✔✔1. exposure
2. volatility
3. Likelihood
4. Consequences
5. Time Horizon
6. Correlation
Name the classifications of risk - ✔✔Pure vs. Speculative
4
100% Pass Guarantee Katelyn Whitman, All Rights
& 3 Exam Questions and Answers
100% Pass
Sets of data that are too large to be gathered and analyzed by traditional
methods - ✔✔Big Data
An innovative item that uses sensors; wireless sensor networks; and data
collection, transmission, and analysis to further enable the item to be faster,
more useful, or otherwise improved - ✔✔Smart Product
A network of objects that transmit data to and from each other without
human interaction - ✔✔Internet of Things (IoT)
Information, technology, and storage services contractually provided from
remote locations, through the internet or another network, without a direct
server connection. - ✔✔Cloud Computing
1
100% Pass Guarantee Katelyn Whitman, All Rights
,A distributed digital ledger that facilitates secure transactions without the
need for a third party - ✔✔Blockchain
Text Mining - ✔✔Obtaining information through language recognition
The use of technological devices in vehicles with wireless communication
and GPS tracking that transmit data to businesses or government agencies;
some return information for the driver - ✔✔Telematics
Amount of risk an organization is willing to take on in order to achieve an
anticipated result or return - ✔✔Risk Appetite
A technique to quantify financial risk by measuring the likelihood of losing
more than a specific dollar amount over a specific period of time -
✔✔Value at risk (VaR)
the total cost incurred by an organization because of the possibility of
accidental loss - ✔✔cost of risk
any condition that presents a possibility of gain or loss, whether or not an
actual loss occurs - ✔✔Exposure
Frequent fluctuations, such as in the price of an asset - ✔✔Volatility
2
100% Pass Guarantee Katelyn Whitman, All Rights
,A qualitative estimate of the certainty with which the outcome of a specific
event can be predicted - ✔✔Likelihood
the effects, positive or negative, of an occurrence - ✔✔consequences
Estimated duration - ✔✔Time Horizon
A relationship between variables - ✔✔correlation
a chance of loss or no loss, but no chance of gain - ✔✔pure risk
a chance of loss, no loss, or gain - ✔✔Speculative risk
The risk that customers or other creditors will fail to make promised
payments as they come due - ✔✔Credit Risk
the perceived amount of risk based on an individual's or organization's
opinion - ✔✔Subjective risk
the measurable variation in uncertain outcomes base on facts and data -
✔✔Objective risk
A risk that affects only some individuals, businesses or small groups
3
100% Pass Guarantee Katelyn Whitman, All Rights
, Not highly correlated - gains and losses tend to occur randomly -
✔✔Diversifiable Risk
The potential for a major disruption in the function of an entire market or
financial system - ✔✔Systemic Risk
Uncertainty about an investment's future value because of potential
changes in the market for that type of investment - ✔✔Market Risk
The risk that an asset cannot be sold on short notice without incurring a
loss - ✔✔Liquidity Risk
What are the basic risk measures? - ✔✔1. exposure
2. volatility
3. Likelihood
4. Consequences
5. Time Horizon
6. Correlation
Name the classifications of risk - ✔✔Pure vs. Speculative
4
100% Pass Guarantee Katelyn Whitman, All Rights
