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NEW QUESTION: 1
For an equity portfolio valued at V whose beta is , the value at risk at a 99% level of confidence is represented by which of the following expressions? Assume represents the market volatility.
A. 2.326 x V x /
B. 1.64 x x V x
C. 2.326 x x V x
D. 1.64 x V x /
Answer: C
Explanation:
Explanation
For the PRM exam, it is important to remember the z-multiples for both 99% and 95% confidence levels (these are 2.33 and 1.64 respectively).
The value at risk for an equity portfolio is its standard deviation multiplied by the appropriate z factor for the given confidence level. If we knew the standard deviation, VaR would be easy to calculate. The standard deviation can be derived using a correlation matrix for all the stocks in the portfolio, which is not a trivial task.
So we simplify the calculation using the CAPM and essentially say that the standard deviation of the portfolio is equal to the beta of the portfolio multiplied by the standard deviation of the market.
Therefore VaR in this case is equal to Beta x Mkt Std Dev x Value x z-factor, and therefore Choice 'a' is the correct answer.

NEW QUESTION: 2
Refer to the exhibit. Which two functions are performed by the load balancer when it handles traffic originating from the Internet destined to an application hosted on the file server farm?
(Choose two.)

A. Terminate the TLS over the UDP connection from the router and originate an HTTPS connection to the selected server.
B. Terminate the TLS over the TCP connection from the router and originate an HTTPS connection to the selected server.
C. Terminate the TLS over the SCTP connection from the router and originate an HTTPS connection to the selected server.
D. Terminate the TLS over the UDP connection from the router and originate an HTTP connection to the selected server.
E. Terminate the TLS over the TCP connection from the router and originate an HTTP connection to the selected server.
Answer: B,E
Explanation:
Secure socket layer (SSL) connections are important for sensitive data. One point to note is that after SSL termination unencrypted traffic is sent between the load balancer and the backend server on the local area network. However, for security purposes, administrators can choose to re-encrypt the traffic at the load balancer before sending it to the servers.
https://avinetworks.com/glossary/ssl-termination/

NEW QUESTION: 3
What is the name given to an individual who is responsible for the management, monitoring and control of all aspects of a particular risk assigned to them?
A. Risk Owner
B. Risk Actionee
C. Project Risk Manager
D. Risk Coordinator
Answer: A