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NEW QUESTION: 1
Calculate the 99% 1-day Value at Risk of a portfolio worth $10m with expected returns of 10% annually and volatility of 20%.
A. 0
B. 1
C. 2
D. 3
Answer: C
Explanation:
Explanation
Be wary of questions asking you to calculate VaR where the mean or expected returns are different from zero.
The VaR formula of z-value times standard deviation needs to have an adjustment for the expected return [ie use VaR = z-value times standard deviation minus expected return]. In this case, the standard deviation for 1 day for the portfolio is =SQRT(1/250)*20%*$10m = $126,491. The VaR is therefore (2.326 * $126,491) - ($10,000,000 * 10% * 1/250) = $290,218.
NEW QUESTION: 2
An IPv4 MPLS provider network is being configured for 6VPE. BGP is being used for the PE-CE protocol to exchange IPv6 routes.
Which of the following is FALSE?
A. The provider network core must be configured to support IPv6.
B. PE routers must be configured to run MP-BGP.
C. MP-BGP in the provider network needs to support the VPN-IPv6 address family.
D. PE-to-CE BGP sessions need to be configured to support IPv6.
Answer: A
NEW QUESTION: 3
In relation to the company secretary which of the following is correct?
(i) A public company must have a company secretary who is appropriately qualified (ii) A member of CIMA is qualified to act as a company secretary (iii) A private company may choose to have a company secretary and if so he/she must be appropriately qualified
A. (i) only
B. (i) and (ii) only
C. (i), (ii) and (iii)
D. (ii) only
Answer: B
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