[ 2009 FRM Sample Exam ] Operational and Integrated risk management Q14

management, supporting, technology, operation, primary

14. Fund A which pursues energy trading derivatives strategies is considering merging with Fund B, an equity derivatives trading operation. One of the primary drivers behind the merger talks is the possibility of savings on the technology and operations staff supporting each firm's trading environment. Certain of the facts underlying the merger discussions are as follows:

[attach]13798[/attach]

A. .52% due to diseconomies of scope

B. .25% due to economies of scale

C. .52% due to diseconomies of scale

D. .25% due to economies of scope

3.bmp (2.29 MB)

. Schweser exam book 2 Q3

. [求助]09年9月出版的P3教材与10年3月出版的是否不一样？

. 毕博管理咨询(上海)有限公司2009校园招聘！

. Schweser exam book 2 Q3

Abey

CFA New Member

Rank: 1

UID: 418486
帖子: 189
主题: 67
注册时间: 2009-6-13
最后登录: 2009-12-22

2^#

发表于 2009-6-13 11:15 | 只看该作者

Correct answer is Dfficeffice" />

The answer is calculated as follows:

[attach]13800[/attach]

Economies of scope relates to cost savings generated by jointly using inputs for multiple products resulting in a savings. Economies of scale relates to the output of a single financial institution as it output increases its average cost of production falls.

Reference: Anthony Saunders and Marcia Million Cornett, Financial Institutions Management, 4th ed. (ffice:smarttags" />New York: McGraw-Hill, 2003), pp 356 ? 359.

4.gif (3.74 KB)