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NEW QUESTION: 1
Which of the following formulae describes CVA (Credit Valuation Adjustment)? All acronyms have their usual meanings (LGD=Loss Given Default, ENE=Expected Negative Exposure, EE=Expected Exposure, PD=Probability of Default, EPE=Expected Positive Exposure, PFE=Potential Future Exposure)
A. LGD * EE * PD
B. LGD * EPE * PD
C. LGD * PFE * PD
D. LGD * ENE * PD
Answer: B
Explanation:
Explanation
The correct definition of CVA is LGD * EPE * PD. All other answers are incorrect.
CVA reflects the adjustment for counterparty default on derivative and other trading book transactions. This reflects the credit charge, that neeeds to be reduced from the expected value of the transaction to determine its true value. It is calculated as a product of the loss given default, the probability of default and the average weighted exposure of future EPEs across the time horizon for the transaction.
The future exposures need to be discounted to the present, and occasionally the equations for CVA will state that explicitly. Similarly, in some more advanced dynamic models the correlation between EPE and PD is also accounted for. The conceptual ideal though remains the same: CVA=LGD*EPE*PD.

NEW QUESTION: 2
What is one example of typical business requirements that are driving the design of installed base data centers?
A. greater collaboration
B. IT reorganization
C. physical space
D. virtualization
Answer: A
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 3
Universal Containers (UC) is expecting to have nearly 5 million shipments records in its Salesforce org. Each shipment record has up to 10 child shipment item records. The Shipment custom object has an Organization-wide Default (OWD) sharing model set to Private and the Shipment Item custom object has a Master-Detail relationship to Shipment. There are 25 sharing rules set on the Shipment custom object, which allow shipment records to be shared to each of UC's 25 business areas around the globe. These sharing rules use public groups, one for each business area plus a number of groups for management and support roles. UC has a high turnover of Sales Reps and often needs to move Sales Reps between business areas in order to meet local demand. What feature would ensure that performance, when moving Sales Reps between regions, remains adequate while meeting existing requirements?
A. Contact Salesforce to create Skinny tables on Shipment.
B. Contact Salesforce to enable Defer Sharing Rules
C. Configure shipment OWD to Public Read/Write.
D. Implement data archiving for old Shipment records.
Answer: B