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NEW QUESTION: 1
A risk analyst working for an asset manager with a large debt portfolio is tasked with determining the suitability of using a traded debt ETF as a hedge against the value of the debt portfolio. He/she calculates the minimum variance hedge ratio to be exactly 1.0.
Given the above facts, which of the following statements are certainly true:
I. The ETF represents a perfect hedge for the portfolio
II. The volatility of the portfolio is the same as that for the ETF
III. The ETF cannot be used as an effective hedge for the debt portfolio IV. None of the above
A. I and II
B. IV only
C. III only
D. I only
Answer: B
Explanation:
Explanation
The minimum variance hedge ratio is effectively the beta between the asset to be hedged and the asset used as a hedge, calculated as [correlation between the hedge and the asset to be hedged x volatility of the asset to be hedged/volatility of the hedge].The effectiveness of the hedge depends upon the correlation between the two, ie the asset to be hedged and the hedge. The minimum variance hedge ratio can be 1.0 even in situations where the correlation between the asset and the hedge is low, and as such does not mean much unless we know the hedge effectiveness (ie, the correlation).
It is therefore not possible to draw any certain conclusions based on the minimum variance hedge ratio alone.
IV therefore is the only correct answer.
NEW QUESTION: 2
Which PUT statements will be the log if the program is submitted at the beginning of a new SAS session?
A. Option B
B. Option D
C. Option C
D. Option A
Answer: D
NEW QUESTION: 3
Which of the following statements pertaining to the maintenance of an IT contingency plan is incorrect?
A. Copies of the plan should be provided to recovery personnel for storage offline at home and office.
B. Strict version control should be maintained.
C. The Contingency Planning Coordinator should make sure that every employee gets an up-to-date copy of the plan.
D. The plan should be reviewed at least once a year for accuracy and completeness.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The Contingency Planning Coordinator is not responsible to distribute the contingency plan to all employees.
Incorrect Answers:
A: Once a continuity plan is developed, it actually has to be put into action. The people who are assigned specific tasks need to be taught and informed how to fulfill those tasks, and dry runs must be done to walk people through different situations. The drills should take place at least once a year, and the entire program should be continually updated and improved.
C: Version control is critical. A strict version control of the IT contingency should be kept.
D: There should be two or three copies of these plans. One copy may be at the primary location, but the other copies should be at other locations in case the primary facility is destroyed.
References:
Harris, Shon, All In One CISSP Exam Guide, 6th Edition, McGraw-Hill, 2013, p. 951
NEW QUESTION: 4
You are developing an ASP.NET MVC application that delivers real-time game results to sports fans. The application includes the following code. Line numbers are included for reference only.
The source data for the game results is updated every 30 seconds.
Testers report the following issues with the application:
They report seeing other user's name when they sign in to the application.
They report delays in seeing the latest game results.
You need to correct the performance issues.
Which two changes should you make to the code? Each correct answer presents part of the solution.
A. Replace the code at line 12 with the following code segment:[OutputCache(Duration = 30, VaryByParam = "none", Location = OutputCacheLocation.Server, NoStore = true)]
B. Replace the code at line 07 with the following code segment:[OutputCache(Duration = 3600, VaryByParam = "none", Location = OutputCacheLocation.Server, NoStore = false)]
C. Replace the code at line 07 with the following codesegment:[OutputCache(Duration = 30, VaryByParam = "none", Location = OutputCacheLocation.Client, NoStore = true)]
D. Replace the code at line 12 with the following code segment:[OutputCache(Duration = 3600, VaryByParam = "none", Location = OutputCacheLocation.Client, NoStore = true)]
Answer: A,C
Explanation:
Explanation/Reference:
Explanation:
B: They report delays in seeing the latest game results. This is the output of the GetResults() function. We decrease the Duration in the cache for this function from 3600 to 30. This is one line 12.
A: They report seeing other user's name when they sign in to the application. This is the output of the GetUserInfo() function. We should change the OutputCacheLocation ofthe caching of this function from Server to Client. This is on line 7.
Note: The OutputCacheLocation.Client option indicates that the content should be cached at the requesting client. Any requests for the same resource made from the same client within the expiry period, will be served out the client's cache, without a network request being made to the server.
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References: https://growlycode.wordpress.com/2014/01/10/mvc4-outputcache-location-basics/
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