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NEW QUESTION: 1
Which of the following statements are true:
I. The sum of unexpected losses for individual loans in a portfolio is equal to the total unexpected loss for the portfolio.
II. The sum of unexpected losses for individual loans in a portfolio is less than the total unexpected loss for the portfolio.
III. The sum of unexpected losses for individual loans in a portfolio is greater than the total unexpected loss for the portfolio.
IV. The unexpected loss for the portfolio is driven by the unexpected losses of the individual loans in the portfolio and the default correlation between these loans.
A. II and IV
B. I, II and III
C. I and II
D. III and IV
Answer: D
Explanation:
Explanation
Unexpected losses (UEL) for individual loans in a portfolio will always sum to greater than the total unexpected loss for the portfolio (unless all the loans are correlated in such a way that they default together).
This is akin to the 'diversification effect' in market risk, in other words, not all the obligors would default together. So the UEL for the portfolio will always be less than the sum of the UELs for individual loans.
Therefore statement III is true.This 'diversification effect' will be affected by the default correlations between the obligors, in cases where the probability of various obligors defaulting together is low, the UEL for the portfolio would be much less than the UEL for the individual loans. Hence statement IV is true.I and II are false for the reasons explained above.
NEW QUESTION: 2
George is the network administrator of a large Internet company on the west coast. Per corporate policy, none of the employees in the company are allowed to use FTP or SFTP programs without obtaining approval from the IT department. Few managers are using SFTP program on their computers. Before talking to his boss, George wants to have some proof of their activity. George wants to use Ethereal to monitor network traffic, but only SFTP traffic to and from his network.
What filter should George use in Ethereal?
A. src port 22 and dst port 22
B. src port 23 and dst port 23
C. net port 22
D. udp port 22 and host 172.16.28.1/24
Answer: A
NEW QUESTION: 3
Where may functional testing be performed?
A. At all test levels
B. At the acceptance testing level only
C. At all levels above integration testing
D. At system and acceptance testing levels only
Answer: A
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