Some Prudential Standards Issued by APRA Include Regulations Regarding

question 24

Multiple Choice

Some prudential standards issued by APRA include regulations regarding:

• A)capital adequacy for market risk and liquidity
• B)credit quality and capital adequacy for credit risk
• C)large exposures, business continuity management and securitisation
• D)All of the listed options are correct.

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Definitions:

Single Index Model

A simplified methodology to estimate the returns of a security or portfolio using the performance of a single market index to explain the returns.

Actual Return

The actual gain or loss on an investment, expressed as a percentage of the investment's initial cost.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often based on government bonds.

Forecasted Market Return

An estimate of the total return anticipated from a market or an investment over a specified future period.