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NEW QUESTION: 1
For a 10 year interest rate swap, what would be the worst time for a counterparty to default (in terms of the maximum likely credit exposure)
A. 7 years
B. 2 years
C. Right after inception
D. 10 years
Answer: A
Explanation:
Explanation
Right after inception' is incorrect as the interest rate swap (IRS) would be valued at close to zero right after inception and the credit risk would be minimum. Choice 'a' (ie 10 years, at maturity) is incorrect as at maturity there would be no more cash flows to exchange, and the replacement value of the contract would again be close to zero.
Therefore the worst time for the counterparty to default is somewhere between inception and maturity - in fact the range of possible outcomes for the contract increases with the passage of time, and we should find the worst time to default to be a later date. However, towards maturity, the value of the contract starts to go towards zero again, and the maximum value is reached around 7 years. 2 years is too early for the maximum to be reached for the 10 year IRS, and therefore choice a is the correct answer.
NEW QUESTION: 2
Risk is inherent in all activities and managing risk is critical to a successful portfolio. Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management. When it comes to Portfolio management, which of the following is a risk concern?
A. Reporting and data accuracy
B. Issues with Product development
C. Time, cost and scope commitments
D. Time to market
Answer: A
Explanation:
Explanation
Risk concerns for portfolio management generally involve reporting, data accuracy, portfolio component risk information availability, the quality of portfolio data, the risks that threaten the link between organizational strategy and the portfolio, as well as those risk concerns of the executive and operations management
NEW QUESTION: 3
Which should be configured to create a custom log file with a different log level?
A. Apache Sling Logging Reader Configuration
B. Apache Sling Log Configuration
C. Apache Sling Logging Configuration
D. Apache Sling Logging Logger Configuration
Answer: D
Explanation:
Explanation/Reference:
Reference:
http://docs.adobe.com/docs/en/cq/5-6-1/deploying/configure_logging.html
NEW QUESTION: 4
You need to verify that your system has enough resources to handle the volume of accounts that
would be generated by the summary account template. The template has been designed as
follows:
D-Region-D
The first segment is company, which has ten values.
The second segment is division, which is represented by the rollup group region. It has six parent
values. The last segment is account, which has 500 values.
How many summary accounts would be generated by the template?
A. 5,000
B. 30,000
C. 0
D. 3,000
E. 1
Answer: B