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NEW QUESTION: 1
HOTSPOT


Answer:
Explanation:

NEW QUESTION: 2
Refer to the exhibit.

The exhibit shows configurations for interface 5 and VLAN 20. Note that DHCP snooping and ARP protection are also enabled.
A network administrator finds that interface 5 on an AOS-Switch is disabled. The administrator re-enables the interface, but it shuts down again. What should the administrator investigate?
A. a device that sends unauthorized ARP messages
B. a loop on the interface
C. a device that sends too much unicast traffic
D. rogue DHCP server
Answer: B

NEW QUESTION: 3
The sensitivity (delta) of a portfolio to a single point move in the value of the S&P500 is $100. If the current level of the S&P500 is 2000, and has a one day volatility of 1%, what is the value-at-risk for this portfolio at the 99% confidence and a horizon of 10 days? What is this method of calculating VaR called?
A. $4,660, parametric VaR
B. $14,736, parametric VaR
C. $14,736, historical simulation VaR
D. $4,660, Monte Carlo simulation VaR
Answer: B
Explanation:
Explanation
If the current level of the S&P 500 is 2000, and a single day volatility is 1%, and the delta (ie change in portfolio value from a one point change) is $100, then the 1 day volatility for the portfolio in dollars is 2000 *
1% * $100 = $2,000.
At the 99% confidence level, the value of the inverse cumulative density function for the normal distribution is
2.33 (=NORMSINV(99%), in Excel). Therefore the 1 day VaR will be 2.33 * $2000 = $4,660. Extending it to
10 days using the square root of time rule, we get the 10 day VaR as equal to SQRT(10)*4660 = $14,736.
Since this method of calculating VaR relies upon a delta approximation of a risk factor (in this case the S&P500), it is the parametric approach to calculating VaR (the other methods being historical simulation, and Monte Carlo simulation).
The
2015 Handbook provides an excellent example of parametric (and other) VaR calculations in Chapter 3 of Volume III of Book 3. The spreadsheet used for the illustration can be downloaded from
http://www.prmia.org/prm-exam/handbook-resources.