Chapter 4: Senior Officer and Director Liability
1. Prosecutions under the _________, would include bid rigging, price discrimination, predatory pricing or conspiracies to lessen competition. These are criminal prosecutions with fines ranging up to $10 million or five years imprisonment. This is an area where the regulators have indicated that they will be pursuing individual directors and officers, not just their corporations.
a) Combines Investigation Act
b) Free Trade Act
c) Constitution Act
d) Competition Act
Chapter 5: Risk Management in the Securities Industry
2. What is correct about Value-at-Risk (VaR)?
I. VaR is a measure of the likely loss of market value at a pre-defined confidence level and holding period for a given portfolio.
II. VaR is determined by four major factors: exposure, volatility, holding period and confidence level.
III. Exposure refers to market positions at risk and volatility indicates market price fluctuation of the market positions.
IV. Confidence level and holding period are determined by securities regulators.
a) I, II
b) I, II, III
c) I, II, IV
d) I, II, III, IV
1. d) Competition Act
2. b) I, II, III
Statement IV is incorrect. Confidence level and holding period are determined by individual institutions and the usage of VaR.