stress testing

CFA Level III
#21

i ask again - if you say push factor instead of factor push, do you think its ok?

#22

needhelp Wrote: ------------------------------------------------------- > i ask again - if you say push factor instead of > factor push, do you think its ok? how would anyone here know? you need to ask someone who has graded.

#23

needhelp Wrote: ------------------------------------------------------- > i ask again - if you say push factor instead of > factor push, do you think its ok? yes, i think they will count. Will probably give some credit for worst case too, although i am not sure

#24

I can’t even remember what I put… I remember thinking “factor push, isn’t that really just a type of stress testing,” Then I thought “Monte Carlo, but don’t they use that in VAR anyway.” Oh, that’s right, I had something like “worst case optimization.”

#25

I put factor push and said it yields worst case scenario (I was clearly writing too much).

#26

Monte Carlo - that is a way of determining VAR. It can be used in scenario testing. I don’t think MC will qualify as an answer. MO.

#27

Wasn’t the q asking for an alternative to stylized scnerios? Hence stressing models is what they are after?

#28

I used the “Maximum Loss Optimization”… hope that one counts.

#29

i said using historical data … no time to think at that time, almost forgot this question

#30

So if someone says Carlo Monte instead of Monte Carlo, would it count?

#31

Push factor Carlo monte averse risk risk at value swap default credit rate free risk litterman-black

#32

needhelp Wrote: ------------------------------------------------------- > So if someone says Carlo Monte instead of Monte > Carlo, would it count? Yeah, but instead of 10 they will give you 01.

#33

CFAAtlanta Wrote: ------------------------------------------------------- > needhelp Wrote: > -------------------------------------------------- > ----- > > So if someone says Carlo Monte instead of Monte > > Carlo, would it count? > > > Yeah, but instead of 10 they will give you 01. LOL

#34

I like rate free risk. Sign me up for that option!

#35

>So if someone says Carlo Monte instead of Monte Carlo, would it count? No, since it is wrong. The textbook lists factor push under stress testing.

#36

needhelp Wrote: ------------------------------------------------------- > So if someone says Carlo Monte instead of Monte > Carlo, would it count? lol, I’m sure that answer is going to bring a lot of lol to the graders

#37

what about Maximum Loss Optimization?

#38

I put down “actual extreme event”. There’re six available answers, stylized scenarios , actual extreme events, hypothetical events, factor push, max loss optimization and worst case scenario. Am I right?