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NEW QUESTION: 1
What would be the consequences of a model of economic risk capital calculation that weighs all loans equally regardless of the credit rating of the counterparty?
I. Create an incentive to lend to the riskiest borrowers
II. Create an incentive to lend to the safest borrowers
III. Overstate economic capital requirements
IV. Understate economic capital requirements
A. I only
B. III only
C. II and III
D. I and IV
Answer: D
Explanation:
Explanation
If capital calculations are done in a standard way regardless of risk (as reflected by credit ratings), then it creates a perverse incentive for the lenders' employees to lend to the riskiest borrowers that offer the highest expected returns as there is no incentive to 'save' on economic capital requirements that are equal for both safe and unsafe borrowers. Therefore statement I is correct.
Given that the portfolio of such an institution is likely to then comprise poor quality borrowers, and economic capital would be based upon 'average' expected ratings, it is likely to carry lower economic capital given its exposures. Therefore any such economic risk capital model is likely to understate economic capital requirements. Therefore statement IV is correct.
Statements II and III are incorrect and Choice 'b' is the correct answer.

NEW QUESTION: 2
You need to recommend a solution for the users at Contoso to authenticate to the cloud-based services and the Azure AD-integrated applications.
What should you include in the recommendation? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 3
A company is migrating its on-premises build artifact server to an AWS solution. The current system consists of an Apache HTTP server that serves artifacts to clients on the local network, restricted by the perimeter firewall. The artifact consumers are largely build automation scripts that download artifacts via anonymous HTTP, which the company will be unable to modify within its migration timetable.
The company decides to move the solution to Amazon S3 static website hosting. The artifact consumers will be migrated to Amazon EC2 instances located within both public and private subnets in a virtual private cloud (VPC).
Which solution will permit the artifact consumers to download artifacts without modifying the existing automation scripts?
A. Create a VPC endpoint and add it to the route table associated with subnets containing consumers.
Configure the bucket policy to allow s3:ListBucket and s3:GetObject actions using the condition and the condition key aws:SourceIp matching the VPC CIDR block.
IpAddress
B. Create a NAT gateway within a public subnet of the VPC. Add a default route pointing to the NAT gateway into the route table associated with the subnets containing consumers. Configure the bucket policy to allow the s3:ListBucket and s3:GetObject actions using the condition IpAddress and the condition key aws:SourceIp matching the elastic IP address if the NAT gateway.
C. Create an IAM role and instance profile for Amazon EC2 and attach it to the instances that consume build artifacts. Configure the bucket policy to allow the s3:ListBucket and s3:GetObjects actions for the principal matching the IAM role created.
D. Create a VPC endpoint and add it to the route table associated with subnets containing consumers.
Configure the bucket policy to allow s3:ListBucket and s3:GetObject actions using the condition and the condition key aws:sourceVpce matching the identification of the VPC StringEquals endpoint.
Answer: D

NEW QUESTION: 4
You manage a store and want to increase the sales of some high profit items. One way to do this is by placing these items close to other products that are often purchased with the high profit items.
You have a year's history of all sales, including all the items that were purchased in each sale. To determine optimal product placement for the high profit items, which mining method should be used to analyze your data?
A. Association
B. Classification
C. Clustering
D. Regression
Answer: A