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NEW QUESTION: 1
The VaR of a portfolio at the 99% confidence level is $250,000 when mean return is assumed to be zero. If the assumption of zero returns is changed to an assumption of returns of $10,000, what is the revised VaR?
A. 0
B. 1
C. 2
D. 3
Answer: A
Explanation:
Explanation
The exact formula for VaR is = -(Z + ), where Z is the z-multiple for the desired confidence level, and is the mean return. Now Z is always a negative number, or at least will certainly be provided the desired confidence level is greater than 50%, and is often assumed to be zero because generally for the short time periods for which market risk VaR is calculated, its value is very close to zero.
Therefore in practice the formula for VaR just becomes -Z, and since Z is always negative, we normally just multiply the Z factor without the negative sign with the standard deviation to get the VaR.
For this question, there are two ways to get the answer. If we use the formula, we know that -Z= 250,000 (as
=0), and therefore -Z - = 250,000 - 10,000 = $240,000.
The other, easier way to think about this is that if the mean changes, then the distribution's shape stays exactly the same, and the entire distribution shifts to the right by $10,000 as the mean moves up by $10,000. Therefore the VaR cutoff, which was previously at -250,000 on the graph also moves up by 10k to -240,000, and therefore $240,000 is the correct answer.
The other choices are intended to confuse by multiplying the z-factor for the 99% confidence level with
10,000 etc.

NEW QUESTION: 2
On which tab can you add the pricing detail from a Request for Proposal (RFP) into a contract in SAP Ariba Buying and Invoicing?
Please choose the correct answer.
Response:
A. The Award tab of the RFP
B. The Events tab of the Contract Workspace
C. The Contract tab of the RPF
D. The Pricing tab of the Contract Workspace
Answer: A

NEW QUESTION: 3
Refer to the exhibit. A network technician is asked to design a small network with redundancy. The exhibit represents this design, with all hosts configured in the same VLAN. What conclusions can be made about this design?

A. The router will not accept the addressing scheme.
B. The connection between switches should be a trunk.
C. The router interfaces must be encapsulated with the 802.1Q protocol.
D. This design will function as intended.
E. Spanning-tree will need to be used.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Each interface on a router must be in a different network. If two interfaces are in the same network, the router will not accept it and show error when the administrator assigns it.

NEW QUESTION: 4
UltraPath multipathing software supports a variety of network connectivity, the easiest way to connect directly connected networking.
A. True
B. False
Answer: A

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