RSK4803 Exam
Pack 2023
LATEST QUESTIONS
AND ANSWERS
,Question 1
Please read the Diamond Rush Case study in the Jan/Feb 2018 e
past exam paper you can email your request to me-Jabu.My ema
First yo
Variance
σ(X) = R
MPL The
Solution
MPL (aft
The maximum probable yearly aggregate loss is that value that
will equal or succeed in a stated proportion of all cases the total
loss amount during a one- year period from a specified peril.
,Question 2
The CEO of Lucky Strike has requested you to calculate the cost of risk for 2016. Classify
riskand prepare a table of the total costr of risk for Lucky Strike for the next EXCO meetin
question
Solution
the disc
Depreciation of mining assets is not a cost of risk. The
depreciation of the proposed generators is not relevant to the
, Question 3
It is clear from the case study that power outages have had an adverse e ect on th
alternatives as stated in the case study and make a recommendation to the board
alternatives to ensure business continuation. Your answer should include the follo
• Alternative/Instrument • Power
Strike
• Characteristics of the solution from R
• Total cost per solution option
• Expected advantages/disadvantages of the solution • The str
time o
• Recommendation one of
Solution Lucky St
Students were given leeway to argue to create capacity of if the op
13.5MWh, or 7MWh, depending whether they can develop an addition
argument for running the backup generators at full capacity overShould t
an extended period. reliance
The cost
Alternative 1: Option Strategy
Raw Diamond is prepared to sell options with a strike of R1 8m Premium
per 1MWh. The premium is 10% of the strike price i.e. R18 000 Exercise
per MWh. The most appropriateoption is an American Call Nationa
Option due to the following reasons: The tota
R250 00
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