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NEW QUESTION: 1
Which of the following are true:
I. Monte Carlo estimates of VaR can be expected to be identical or very close to those obtained using analytical methods if both are based on the same parameters.
II. Non-normality of returns does not pose a problem if we use Monte Carlo simulations based upon parameters and a distribution assumed to be normal.
III. Historical VaR estimates do not require any distribution assumptions.
IV. Historical simulations by definition limit VaR estimation only to the range of possibilities that have already occurred.
A. All of the above
B. III and IV
C. I, III and IV
D. I, II and III
Answer: C
Explanation:
Explanation
Statement I is true. If a Monte Carlo simulation is based upon the same parameters as used for analytical VaR, and enough number of simulations are carried out, we would get the same results as with analytical VaR.
Statement II is false. We cannot use Monte Carlo simulations using parameters based upon a normal assumption when the underlying distribution is not normal. For example, if a return stream is based upon say a uniform distribution, we cannot use a simulation based upon drawings from a normal distribution even though we use the same mean and standard deviation.
Statement III is true. This is the advantage of historical simulations - no assumptions are necessary. (Historical simulations however often suffer from the great disadvantage of the paucity of data that would cover all possibilities.) Statement IV is true. The results of historical simulations are limited to the data they are based upon.
NEW QUESTION: 2
When configuring a checklist application task what value must be select to ensure you will only be able to select from a list of employee tasks verses manager tasks?
A. Ensure the owner field is set to employee.
B. Ensure the owner and performer are both set to employee.
C. Ensure the eligibility profile linked to the task contains criteria the include only active employees.
D. Ensure the performer field is set to employee.
Answer: B
NEW QUESTION: 3
Which IEEE standard protocol is initiated as a result of successful DTP completion in a switch over Fast Ethernet?
A. 802.1w
B. 802.1D
C. 802.3ad
D. 802.1Q
Answer: D
Explanation:
Dynamic Trunking Protocol (DTP) is a Cisco proprietary protocol for negotiating trunking on a link between two
devices and for negotiating the type of trunking encapsulation (802.1Q) to be used.
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