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NEW QUESTION: 1
WTW is a global company which produces high-tech equipment such as smart televisions and mobile phones The CFO has just resigned, having been offered a post at a competitor The CFO was well regarded and WTWs share price has fallen in response to the announcement At a board meeting the production director commented that the share price fall is the fault of the nomination committee Which THREE of the following statements are correct?
A. The nomination committee should prepare a description of the role and capabilities required for the CFO's replacement
B. If the nomination committee had been working effectively the CFO would not have resigned
C. When planning the CFO's replacement the nominations committee should consider the diversity of the board
D. The nomination committee should have considered succession planning for directors before the CFO resigned
E. Most of the members of the nomination committee should be executive directors as they are responsible for ensuring the share price recovers quickly.
Answer: A,C,D
NEW QUESTION: 2
A bank holds a portfolio of residential mortgages. An increase in the volatility of mortgage interest rates leads to:
A. An increase in the value of the mortgage portfolio
B. A decrease in the value of the mortgage portfolio
C. Both duration and value of the mortgage portfolio stay unchanged
D. An increase in the duration of the mortgage portfolio
Answer: B
Explanation:
Explanation
A residential mortgage carries a prepayment option for the borrower, where in the event of a decrease in interest rates they are likely to repay the mortgage and refinance at the new lower rate. If rates go up, the bank does not have a similar option. If the volatility of the underlying interest rates increases, mortgage holders are more likely to be faced with new rates that are sufficiently lower to persuade them to refinance. This reduces the ability of the bank to continue to earn the higher interest rate it was earning before.
Therefore an increase in volatility of the mortgage interest rates decreases the value of the mortgage portfolio.
The same rationale applies to callable bonds, where the borrower has the option to call the bond.
NEW QUESTION: 3
A vCloud Automation Center administrator needs to allow users to revert their machines to their initial deployment state.
What should the administrator do?
A. Enable the Reactivate option in the blueprint.
B. Enable the Linked Clone option in the blueprint.
C. Enable the Reprovision option in the blueprint.
D. Enable the Snapshot option in the blueprint.
Answer: C
NEW QUESTION: 4
A composition member is a service that participates in a service composition by being
composed by another service. Select the correct answer.
A. True
B. False
Answer: A
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