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NEW QUESTION: 1
In the case of historical volatility weighted VaR, a higher current volatility when compared to historical volatility:
A. will decrease the VaR estimate
B. will increase the VaR estimate
C. will not affect the VaR estimate
D. will increase the confidence interval
Answer: B
Explanation:
Explanation
When calculating volatility weighted VaR, returns are adjusted by a factor equal to the current volatility divided by the historical volatility, ie the volatility that existed during the time period the returns were earned.
If the current volatility is greater than the historical volatility (also called contemporary volatility), then it has the effect of increasing the magnitude of any past returns (whether positive or negative). This in turn increases the VaR.
Consider an example: if the current volatility is 2%, and a return of -5% was earned at a time when the volatility was 0.8%, then the volatility weighted return would be 12.5% (=-5% x 2%/0.8%). Clearly, this has the effect of increasing the VaR.
Choice 'd' is therefore the correct answer.
NEW QUESTION: 2
What Is not available when reviewing the sold-to account on the Credit Check Inquiry?
A. credit limit for the parent
B. aging balance of open A/R
C. date last paid
D. last Invoice date
E. total amount at open sales orders
Answer: A
NEW QUESTION: 3
At XYZ Corp, multiple ClaimUnit sub case types are spun off from a parent Claim case. User retrieve ClaimUnit assignment using Get Next Work based on the average time to resolve each sub case type.
Assignments associated with sub case types that tale longer to resolve on average should be retrieve first. The average time to resolve sub case types will change over time.
How do you design the solution to handle this requirement?
A. Implement a GetNextWork solution based on case deadline and ClaimUnit type. Specialize the Server Level Rule By ClaimUnit case type.
B. Increase subcase urgency based on Claim unit type prior to the workbasket assignment. Specialize the service Level Rule by ClaimUnit case type.
C. Store the average time o complete sub case types in a table. Customize GetNextWork list view by joining to this table and use this for ordering he results.
D. When the SLA's goal is reached, have an escalation Activity adjust the clam urgency in proportion to the average time to resolve ClaimUnit cases.
Answer: B
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