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NEW QUESTION: 1
You are encouraged by your managet to help a customer see how your proposed HP solution meets a ''hurdle rate''. What is a hurdle rate?
A. the minimum acceptable rate of return for a project
B. the rate at which an investment approaches the break-even point
C. the rate at which the solution responds to service requests
D. the expected rate of return on a new investment
Answer: A

NEW QUESTION: 2
Which of the following statements is true:
I. If the sum of its parameters is less than one, GARCH is a mean reverting model of volatility, while EWMA is never mean reverting II. Standardized returns under both EWMA and GARCH show less non-normality than non standardized returns III. Steady state variance under GARCH is affected only by the persistence coefficient IV. Good risk measures are always sub-additive
A. I & II
B. II, III and IV
C. I, II and III
D. I, II and IV
Answer: D
Explanation:
Explanation
GARCH is a mean reverting model of volatility, with a steady state mean that the model reverts to in the absence of market shocks. EWMA is not mean reverting and volatility under EWMA stays constant in the absence of shocks. Therefore statement I is correct.
Both EWMA and GARCH models are designed to address volatility clustering, which explains much of the non-normality of returns. When returns are standardized to the volatility calculations under either of these methods, the returns appear far closer to the normal distribution than non-standardized returns. (If it were not to, then there would have been no point in using these techniques.) Statement II is correct.
Steady state variance under GARCH is defined as / (1 - - ), where and are the two parameters (called the reaction and persistence coefficient respectively). Clearly, it is affected by more than just the persistence coefficient, therefore statement III is not correct.
Sub-additivity is a very desired property in risk measures. It implies the sum of the parts is greater than the whole. In the case of risk measures, the whole is smaller than the sum of the parts due to diversification.
Statement IV is true.
Therefore the correct answer is Choice 'c'

NEW QUESTION: 3
You work as a project manager for SoftTech Inc. A threat with a dollar value of $150,000 is expected to happen in your project and the frequency of threat occurrence per year is
0.001. What will be the annualized loss expectancy in your project?
A. $120
B. $150
C. $100
D. $180.25
Answer: B

NEW QUESTION: 4
Siehe Ausstellung.

Welche Art von Route verwendet R1, um den Host 10.10.13.10/32 zu erreichen?
A. Hostroute
B. Standardroute
C. Netzwerkroute
D. schwebende statische Route
Answer: C

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