H19-371_V1.0 Exam Questions and Answers

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NEW QUESTION: 1
Stress testing portfolios requires changing the asset volatilities and correlations to extreme values. Which of the following would lead to a non positive definite covariance matrix?
A. Changing the volatilities to be greater than 100%
B. All of the above
C. Changing all the correlations to be zero
D. Changing all the correlations to be unity
Answer: D


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