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NEW QUESTION: 1
When performing portfolio stress tests using hypothetical scenarios, which of the following is not generally a challenge for the risk manager?
A. Considering back office capacity to deal with increased transaction volumes
B. Building a consistent set of hypothetical shocks to individual risk factors
C. Building a positive semi-definite covariance matrix
D. Evaluating interrelationships between counterparties when considering liquidity risks
Answer: A
Explanation:
Explanation
Choice 'c' relates to operational risk and process capabilities, generally not a concern when evaluating market risk of a portfolio. Choice 'a', Choice 'b' and Choice 'd' represent real concerns for the risk manager when building stress tests for the value of a portfolio.
Choice 'a' is relevant because certain shocks may be inconsistent with each other, and therefore implausible.
For example, an increase in futures prices may be inconsistent with without spot prices and/or interest rates increasing according to the no-arbitrage condition. Choice 'b' is relevant when modeling a covariance matrix in a stressed situation with higher correlations, as a hypothetical covariance matrix which is not positive semi-definite may give absurd results (negative variance). Choice 'd' is relevant as liquidity risks may affect the price that can be realized for positions held.
NEW QUESTION: 2
Which of the following are not components of the 5-tuple of a flow in NetFlow? (Select all that apply.)
A. Flow record ID
B. Destination port
C. Source IP address
D. Gateway
E. Source port
Answer: A,D
NEW QUESTION: 3
Refer to the exhibit.
If this configuration is applied to a device that redistributes EIGRP routes into OSPF. which two statements about the behavior of the device are true? (Choose Two )
A. EIGRP routes appears as type 3 LSAs in the OSPF database.
B. EIGRP routes appears in the routing table as N2 OSPF routes
C. The device router ID is set to Loopback0 automatically
D. The device redistributes only classful EIGRP networks into OSPF.
E. The device redistributes all EIGRP networks into OSPF
F. EIGRP routes appears in the routing table as E2 OSPF routes
Answer: D,E
