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NEW QUESTION: 1
When constructing a gap report, how would a EUR 25,000,000.00 long position in 6x12 FRA be categorized?
A. as a EUR 25,000,000.00 12-month liability and a EUR 25,000,000.00 6-month asset
B. as a EUR 25,000,000.00 6-month liability and a EUR 25,000,000.00 12-month asset
C. as a EUR 12,500,000.00 6-month asset and a EUR 12,500,000.00 12-month liability
D. as a EUR 12,500,000.00 6-month liability and a EUR 12,500,000.00 12-month asset
Answer: A

NEW QUESTION: 2
Which of the following assumptions underlie the 'square root of time' rule used for computing VaR estimates over different time horizons?
I. the portfolio is static from day to day
II. asset returns are independent and identically distributed (i.i.d.)
III. volatility is constant over time
IV. no serial correlation in the forward projection of volatility
V. negative serial correlations exist in the time series of returns
VI. returns data display volatility clustering
A. I and II
B. I, II, V and VI
C. I, II, III and IV
D. III, IV, V and VI
Answer: C
Explanation:
Explanation
The square root of time rule can be used to convert, say a 1-day VaR to a 10-day VaR, by multiplying the known number by the square root of time to get the VaR over a different time horizon. However, there are key assumptions that underlie the application of this rule, and statements I to IV correctly state those assumptions.
Statements V and VI are not correct, because the application of the square root of time rule requires the absence of serial correlations, and also the absence of volatility clustering (ie independence). Therefore Choice
'c' is the correct answer.
The square root of time rule is also applied to convert volatility or standard deviation for one period to the volatility for a different time period. Remember that VaR is just a multiple of volatility, and therefore the assumptions that apply to the square root of time rule for VaR also apply to the same rule when used in the context of volatilities or standard deviation.

NEW QUESTION: 3
-- Exhibit -

-- Exhibit --
Click the Exhibit button.
A contractor needs to connect a laptop to your company network, but your company has no wireless access and each office has only a single network port for an employee laptop. You have an IP phone with a data port available and you have access to the switch connected to it. You can also add the contractor's MAC address to the RADIUS server database.
Referring to the exhibit, which three commands will allow access? (Choose three.)
A. set protocols dot1x authenticator authentication-profile-name radius_profile interface ge-0/0/16.0 mac- radius
B. set interfaces ge-0/0/16.0 family ethernet-switching vlan members contractor
C. set interfaces ge-0/0/16.0 family ethernet-switching vlan members all
D. set interfaces ge-0/0/16.0 family ethernet-switching port-mode trunk
E. set protocols dot1x authenticator authentication-profile-name radius_profile interface ge-0/0/16.0 supplicant multiple
Answer: A,B,E


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