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C2020-002 · Question #10

Click the Exhibit button. You built a model where the reserve is calculated on a sub reserving layer as shown inthe exhibit. The realistic layer calls a variable "Reserve_PP: from the reserving…

The correct answer is B. The formula for Reserve_PP in the realistic layer references Reserving Layer instead of. See the full explanation below for the reasoning.

Question

Click the Exhibit button. You built a model where the reserve is calculated on a sub reserving layer as shown inthe exhibit. The realistic layer calls a variable "Reserve_PP: from the reserving layer. When you run the model, Algo Financial Modeler presents you with the following generator error Reserve_PP: "ReservingLayer is not recognized" What is the problem?

Exhibit

C2020-002 question #10 exhibit

Options

  • AThe Reserve_PP variable is not a portfolio variable.
  • BThe formula for Reserve_PP in the realistic layer references Reserving Layer instead of
  • CThere is no variable called Reserve_PP in the reserving layer.
  • DReserve_PP in the reserving layer is a step variable rather than a rollback variable.

How the community answered

(31 responses)
  • A
    6% (2)
  • B
    71% (22)
  • C
    16% (5)
  • D
    6% (2)

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