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C2020-003 · Question #55

Click the Exhibit button. You built a model where the reserve is calculated on a sub reserving layer as shown in the 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 in the 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

C2020-003 question #55 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

(44 responses)
  • A
    7% (3)
  • B
    70% (31)
  • C
    18% (8)
  • D
    5% (2)

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