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NEW QUESTION: 1
Refer to the exhibit. The links outside the TrustSec area in the given SGA architecture are unprotected. On which two links does EAC take place? (Choose two.)

A. between switch 1 and switch 2
B. between switch 5 and host 2
C. between host 1 and switch 1
D. between switch 1 and switch 5
E. between the authentication server and switch 4
F. between switch 2 and switch 3
Answer: B,F
Explanation:
In TrustSec networks, packets are filtered at the egress, not the ingress to the network. In TrustSec endpoint authentication, a host accessing the TrustSec domain (endpoint IP address) is associated with a Security Group Tag (SGT) at the access device through DHCP snooping and IP device tracking. The access device transmits that association (binding) through SXP to TrustSec hardware-capable egress devices, which maintain a continually updated table of Source IP to SGT bindings. Packets are filtered on egress by the TrustSec hardware-capable devices by applying security group ACLS (SGACLs).
Endpoint Admission Control (EAC) access methods for authentication and authorization can include the following:
* 802.1X port-based Authentication
* MAC Authentication Bypass (MAB)
* Web Authentication (WebAuth)

EAC is an authentication process for an endpoint user or a device connecting to the TrustSec domain.
Usually EAC takes place at the access level switch. Successful authentication and authorization in the EAC process results in Security Group Tag assignment for the user or device. Currently EAC can be 802.1X, MAC Authentication Bypass (MAB), and Web Authentication Proxy (WebAuth).

NEW QUESTION: 2
Jean Sims, CFA and Ellie Hayes, CFA are advisors for Eagle Fixed Income Investors. Eagle makes recommendations on bonds, mortgages, and other fixed income investments for wealthy individuals and institutions.
Eagle has a client, Parker Portfolio Managers, which has a large holding of mortgages. Due to a projected decline in the housing market in the United States, the yields on mortgages are expected to increase over the next year. The largest mortgage position for Parker is currently priced at 98.80. Given the projected increase in yields, Sims has calculated an expected price of the mortgage of 95.50 in one year. For the same magnitude of yield change, she projects a price of 101.20 if yields instead fall. Hayes states that Parker should hedge the mortgage by shorting a 10-year Treasury bond futures contract.
Discussing the performance of mortgages in general with Parker officers, Hayes states that they are market directional investments. Hayes's reasoning is that mortgages tend to follow the general direction of the fixed income market, where mortgages should be avoided when interest rates are expected to rise and favored when they are expected to fall.
Commenting on hedging mortgages in general, Sims states that a two Treasury bond futures hedge is usually more effective than a single Treasury bond futures hedge. Furthermore, she states, a mortgage can be hedged dynamically by adjusting the hedge through time, or by buying interest rate options. An option hedge would be used when its implied volatility is low, she states.
Examining the Parker portfolio in more detail, Sims gathers the following details on mortgages they hold.

Later that day Sims and Hayes discuss the appropriate hedging of mortgages and make the following statements:
* Sims: "To hedge the duration exposure of a mortgage and maintain a constant duration, the investor should sell Treasury bond futures when interest rates fall and buy Treasury bond futures when interest rates rise."
* Hayes: "Mortgage investors face model risk where using a poor model increases the investor's risk. For example, if prepayments increase faster than expected, the investor faces greater risk. Unfortunately, there is no easy way to hedge model risk." Examining the properties of principal only (PO) and interest only (10) strips, Sims determines that the key rate durations for a client's PO strip are negative before year 8 but turn positive thereafter. The client's 10 strip has key rate durations that are positive up until year 10 but turn negative thereafter. Overall, the duration is positive for the PO strip and negative for the 10 strip. Sims is examining the effect of a yield curve change on the mortgages. Her assumption is that the short end of the yield curve increases while the Long end of the curve is unchanged.
Which of the following statements regarding Parker's largest mortgage position is correct?
A. The mortgage position has negative exposure to duration at low yields.
B. The hedge proposed by Hayes for the mortgage position will be ineffective.
C. The mortgage position has positive convexity if interest rates decline.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The Parker mortgage has negative convexity when rates decline as do many mortgages. Its price change if yields increase is 3.30 (98.80 - 95-50). if yields fall, the price change is smaller at 2.40 (101.20 - 98.80).
That the price change is smaller in magnitude when yields fall indicates that the mortgage has negative convexity.
Professor's Note: Remember that callable and non-callable bonds behave the same when rates are historically high relative to mortgage rates. Since this mortgage bond is exhibiting negative convexity, current rates must be close to or even below mortgage rates.
The hedge suggested by Hayes will be ineffective, because a Treasury bond is not callable and thus has positive convexity. If yields fall on the mortgage, the gain on the mortgage will be limited due to its negative convexity. The short position in the Treasury bond future will decline in value as yields fall.
Furthermore, if yields increase on mortgages because of an increase in spreads (and not a generalized increase in interest rates), the Treasury bond position will be ineffective, because the yield on Treasuries will not be affected. (Study Session 10, LOS 32.a)

NEW QUESTION: 3
Which OSPF feature supports LSA rate limiting in milliseconds to provide faster convergence?
A. SPF tuning
B. LSA throttling
C. incremental SPF
D. fast hello
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The OSPF Link-State Advertisement (LSA) Throttling feature provides a dynamic mechanism to slow down link-state advertisement (LSA) updates in OSPF during times of network instability. It also allows faster Open Shortest Path First (OSPF) convergence by providing LSA rate limiting in milliseconds.
Reference: http://www.cisco.com/c/en/us/td/docs/ios/12_0s/feature/guide/fsolsath.html

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