CAS Exam 7 Spring 2016, Question 10
Study guide: Exam 7
Part a (0.5 points)
Define external systemic risk and internal systemic risk.
Part b (1 point)
Identify and briefly describe two types of external systemic risk.
Part c (1 point)
Identify and briefly describe two types of internal systemic risk.
Part d (0.5 points)
Describe how the choice of valuation classes within a claims portfolio can affect internal systemic risk.
Answer this question and see the worked solution