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NEW QUESTION: 1
Which of the following statements are true:
I. It is usual to set a very high confidence level when estimating VaR for capital requirements.
II. For model validation, very high VaR confidence levels are used to minimize excess losses.
III. For limit setting for managing day to day positions, it is usual to set VaR confidence levels that are neither too low to be exceeded too often, nor too high as to be never exceeded.
IV. The Basel accord requirements for market risk capital require the use of a time horizon of 1 year.
A. III and IV
B. I and III
C. I and IV
D. II and III
Answer: B
Explanation:
Explanation
This questions deals with the appropriate levels of the holding period and confidence levels for VaR estimates.
These depend upon the use the VaR estimate is intended to be put to - so when calculating VaR levels for capital requirements, or for maintaining credit ratings, very high levels of confidence are generally used. On the contrary, when setting limits or validating a model, a few excess loss situations are not only acceptable but actually desirable, and therefore lower levels of confidence are used.When it comes to the holding period, that may be mandated, as it is under Basel II as being a 10 day period. For other cases, it may be a horizon roughly corresponding to a period in which positions may be liquidated in an orderly day, which could be just one day for highly liquid markets, or a week or more for larger positions in illiquid markets.Therefore statements I and III are true and the others are false. Therefore the only correct answer is Choice 'b'.
NEW QUESTION: 2
What is the primary feature of Connector Appliance?
A. Long-term storage of data
B. Supports bulk operations on all SmartConnectors
C. Aggregates events to reduce the quantity sent to the manager
D. Used to develop the Network Model
Answer: B
NEW QUESTION: 3
Which three parameters must match on all routers in a DMVPN Phase 3 cloud? (Choose three.)
A. NHRP network ID
B. NHRP authentication string
C. GRE tunnel key
D. tunnel VRF
E. EIGRP split-horizon setting
F. EIGRP process name
Answer: A,B,C