Financial Markets Yale Coursera Exam
Questions With 100% Correct Answers
Latest 2025
VaR -
correct answer ✅Value at risk, variance
1% one year VaR of 10 million -
correct answer ✅1% chance portfolio will lose 10$ mil in one year
stress test -
correct answer ✅popular as of 2009, Dodd Frank, fed has to 3 diff
scenarios for non bank entities it supervises annually
Freddie Mac & ginne mae did stress tests for 13% in 2005 -
correct answer ✅home prices dropped 30%
Stress test pros and cons -
correct answer ✅show legitimacy, incentivizes white washing
Dodd Frank -
correct answer ✅Subpoena power to office of financial research
,Financial Markets Yale Coursera Exam
Questions With 100% Correct Answers
Latest 2025
Market Risk -
correct answer ✅risk Apple does something in response to entire
market
Idiosyncratic risk -
correct answer ✅Apple only risk
Regression/dot's residual -
correct answer ✅vertical distance between regression line and dot
Y= mx + b -
correct answer ✅b= alpha, y=return on apple stock, slope m=
beta, x=market return
slope beta -
correct answer ✅shows how much a stock co moves w/ the
market, measure of stock's systematic risk
Cachy distribution -
correct answer ✅fat tailed distribution
, Financial Markets Yale Coursera Exam
Questions With 100% Correct Answers
Latest 2025
Covariance -
correct answer ✅relationship between two entities
Covariance 2 identical firms # of scenarios -
correct answer ✅4
Beta -
correct answer ✅covariance with market
Risk Pooling -
correct answer ✅if n policies each with independent probability p
of a claim, then # of claims follows binomial distribution. SD of
fraction of policies that claim = square root p(1-p)/n
Law of Large #s -
correct answer ✅as n gets large, SD reaches 0 Nears expected
value
Moral hazard -
correct answer ✅actor has incentive to increase exposure to risk
bc bears less of consequences of risk
Questions With 100% Correct Answers
Latest 2025
VaR -
correct answer ✅Value at risk, variance
1% one year VaR of 10 million -
correct answer ✅1% chance portfolio will lose 10$ mil in one year
stress test -
correct answer ✅popular as of 2009, Dodd Frank, fed has to 3 diff
scenarios for non bank entities it supervises annually
Freddie Mac & ginne mae did stress tests for 13% in 2005 -
correct answer ✅home prices dropped 30%
Stress test pros and cons -
correct answer ✅show legitimacy, incentivizes white washing
Dodd Frank -
correct answer ✅Subpoena power to office of financial research
,Financial Markets Yale Coursera Exam
Questions With 100% Correct Answers
Latest 2025
Market Risk -
correct answer ✅risk Apple does something in response to entire
market
Idiosyncratic risk -
correct answer ✅Apple only risk
Regression/dot's residual -
correct answer ✅vertical distance between regression line and dot
Y= mx + b -
correct answer ✅b= alpha, y=return on apple stock, slope m=
beta, x=market return
slope beta -
correct answer ✅shows how much a stock co moves w/ the
market, measure of stock's systematic risk
Cachy distribution -
correct answer ✅fat tailed distribution
, Financial Markets Yale Coursera Exam
Questions With 100% Correct Answers
Latest 2025
Covariance -
correct answer ✅relationship between two entities
Covariance 2 identical firms # of scenarios -
correct answer ✅4
Beta -
correct answer ✅covariance with market
Risk Pooling -
correct answer ✅if n policies each with independent probability p
of a claim, then # of claims follows binomial distribution. SD of
fraction of policies that claim = square root p(1-p)/n
Law of Large #s -
correct answer ✅as n gets large, SD reaches 0 Nears expected
value
Moral hazard -
correct answer ✅actor has incentive to increase exposure to risk
bc bears less of consequences of risk
