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NEW QUESTION: 1
The standalone economic capital estimates for the three uncorrelated business units of a bank are $100, $200 and $150 respectively. What is the combined economic capital for the bank?
A. 0
B. 1
C. 2
D. 3
Answer: D
Explanation:
Explanation
Since the business units are uncorrelated, we can get the combined EC as equal to the square root of the sum of the squares of the individual EC estimates. Therefore Choice 'a' is the correct answer.
[=SQRT(100

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250-600 PDF VCE - VMware 250-600 Simulations Pdf, Reliable 250-600 Practice Questions - Masthead

Exam Code: 2+150

Total Practice Questions : 60

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