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NEW QUESTION: 1
Which switch series can function as a modular chassis or a fixed-form-factor stackable switch?
A. A9500 Switch Series
B. A12500 Switch Series
C. A5820 Switch Series
D. A7500 Switch Series
Answer: C
Explanation:
Reference: http://www.costcentral.com/proddetail/HP_A5820_24XG_SFP/JC675A/11274225/ (first paragraph)

NEW QUESTION: 2
With Cisco FTD integrated routing and bridging, which interface does the bridge group use to communicate with a routed interface?
A. switch virtual
B. subinterface
C. bridge group member
D. bridge virtual
Answer: C

NEW QUESTION: 3
The sensitivity (delta) of a portfolio to a single point move in the value of the S&P500 is $100. If the current level of the S&P500 is 2000, and has a one day volatility of 1%, what is the value-at-risk for this portfolio at the 99% confidence and a horizon of 10 days? What is this method of calculating VaR called?
A. $14,736, parametric VaR
B. $14,736, historical simulation VaR
C. $4,660, Monte Carlo simulation VaR
D. $4,660, parametric VaR
Answer: A
Explanation:
Explanation
If the current level of the S&P 500 is 2000, and a single day volatility is 1%, and the delta (ie change in portfolio value from a one point change) is $100, then the 1 day volatility for the portfolio in dollars is 2000 *
1% * $100 = $2,000.
At the 99% confidence level, the value of the inverse cumulative density function for the normal distribution is
2.33 (=NORMSINV(99%), in Excel). Therefore the 1 day VaR will be 2.33 * $2000 = $4,660. Extending it to
10 days using the square root of time rule, we get the 10 day VaR as equal to SQRT(10)*4660 = $14,736.
Since this method of calculating VaR relies upon a delta approximation of a risk factor (in this case the S&P500), it is the parametric approach to calculating VaR (the other methods being historical simulation, and Monte Carlo simulation).
The
2015 Handbook provides an excellent example of parametric (and other) VaR calculations in Chapter 3 of Volume III of Book 3. The spreadsheet used for the illustration can be downloaded from
http://www.prmia.org/prm-exam/handbook-resources.

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