Reading 89 Machine Learning and AI For Risk Management
Reading 89 Machine Learning and AI For Risk Management
Reading 89 Machine Learning and AI For Risk Management
What is the machine learning terminology for analyzing a dataset with no dependent
variable to estimate or predict?
A) Unsupervised learning.
B) Exploratory learning.
C) Distance learning.
D) Naked learning.
The general role of artificial intelligence in risk management is least likely to involve:
A) measuring risk.
B) assessing risk.
C) mitigating risk.
D) eliminating risk.
A) classification.
B) clustering.
C) classification and clustering.
D) principal component analysis and classification.
Which of the following items is least likely to be included in a completely automated artificial
intelligence (AI) solution?
Which type of regression machine learning specifically zero weights independent variables
with low explanatory power?
A) LASSO regression.
B) Principal component analysis (PCA) regression.
C) Partial least squares regression.
D) Ridge regression.
Which of the following items describes the most significant item to consider when having to
trade in large positions in illiquid markets?
A) Opportunity costs.
B) Bid-ask spreads.
C) Market impact costs.
D) Fixed fees.
Which of the following statements regarding machine learning (ML) and/or artificial
intelligence (AI) is most accurate? In reality: