ARM 400 FULLY SOLVED TEST PAPER GRADED
A+
◉ Smart Product.
Answer: 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.
◉ Internet of Things.
Answer: describes a system in which everyday objects are connected
to the internet and in turn are able to communicate information
throughout an interconnected system
◉ Cloud Computing.
Answer: the practice of using a network of remote servers hosted on
the Internet to store, manage, and process data, rather than a local
server or a personal computer.
◉ Blockchain.
Answer: A digital ledger in which transactions made in bitcoin or
another cryptocurrency are recorded chronologically and publicly
◉ Telematics.
,Answer: 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.
◉ Risk Appetite.
Answer: The degree of uncertainty an entity is willing to take on, in
anticipation of a reward.
◉ Value at Risk (VaR).
Answer: A technique to quantify financial risk by measuring the
likelihood of losing more than a specific dollar amount over a
specific period of time.
◉ Cost of Risk.
Answer: The total cost incurred by an organization because of the
possibility of accidental loss.
◉ Risk Exposure.
Answer: An aggregate measure of the potential impact of all risks at
any given point in time in a project, program, or portfolio.
◉ Volatility.
Answer: Indicates how much and how quickly the value of an
investment, market, or market sector changes.
,◉ likelihood.
Answer: probability
◉ consequence.
Answer: the result of an action
◉ Time Horizon.
Answer: the intended duration of a plan
◉ Correlation.
Answer: A measure of the extent to which two factors vary together,
and thus of how well either factor predicts the other.
◉ Pure Risk.
Answer: A chance of loss or no loss, but no chance of gain.
◉ Speculative Risk.
Answer: Chance of loss or gain
◉ Subjective Risk.
, Answer: The perceived amount of risk based on an individual's or
organization's opinion.
◉ Objective Risk.
Answer: The measurable variation in uncertain outcomes based on
facts and data.
◉ diversifiable risk.
Answer: A risk that affects only some individuals, businesses, or
small groups.
◉ nondiversifiable risk.
Answer: a risk that affects the entire economy or large numbers of
persons or groups within the economy
◉ systemic risk.
Answer: The potential for a major disruption in the function of an
entire market or financial system.
◉ market risk.
Answer: risk that affects all companies in the stock market
◉ Liquidity Risk.
A+
◉ Smart Product.
Answer: 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.
◉ Internet of Things.
Answer: describes a system in which everyday objects are connected
to the internet and in turn are able to communicate information
throughout an interconnected system
◉ Cloud Computing.
Answer: the practice of using a network of remote servers hosted on
the Internet to store, manage, and process data, rather than a local
server or a personal computer.
◉ Blockchain.
Answer: A digital ledger in which transactions made in bitcoin or
another cryptocurrency are recorded chronologically and publicly
◉ Telematics.
,Answer: 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.
◉ Risk Appetite.
Answer: The degree of uncertainty an entity is willing to take on, in
anticipation of a reward.
◉ Value at Risk (VaR).
Answer: A technique to quantify financial risk by measuring the
likelihood of losing more than a specific dollar amount over a
specific period of time.
◉ Cost of Risk.
Answer: The total cost incurred by an organization because of the
possibility of accidental loss.
◉ Risk Exposure.
Answer: An aggregate measure of the potential impact of all risks at
any given point in time in a project, program, or portfolio.
◉ Volatility.
Answer: Indicates how much and how quickly the value of an
investment, market, or market sector changes.
,◉ likelihood.
Answer: probability
◉ consequence.
Answer: the result of an action
◉ Time Horizon.
Answer: the intended duration of a plan
◉ Correlation.
Answer: A measure of the extent to which two factors vary together,
and thus of how well either factor predicts the other.
◉ Pure Risk.
Answer: A chance of loss or no loss, but no chance of gain.
◉ Speculative Risk.
Answer: Chance of loss or gain
◉ Subjective Risk.
, Answer: The perceived amount of risk based on an individual's or
organization's opinion.
◉ Objective Risk.
Answer: The measurable variation in uncertain outcomes based on
facts and data.
◉ diversifiable risk.
Answer: A risk that affects only some individuals, businesses, or
small groups.
◉ nondiversifiable risk.
Answer: a risk that affects the entire economy or large numbers of
persons or groups within the economy
◉ systemic risk.
Answer: The potential for a major disruption in the function of an
entire market or financial system.
◉ market risk.
Answer: risk that affects all companies in the stock market
◉ Liquidity Risk.
