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NEW QUESTION: 1
An investor holds a bond portfolio with three bonds with a modified duration of 5, 10 and 12 years respectively. The bonds are currently valued at $100, $120 and $150. If the daily volatility of interest rates is
2%, what is the 1-day VaR of the portfolio at a 95% confidence level?
A. 163.11
B. 115.51
C. 0
D. 1
Answer: B
Explanation:
Explanation
The total value of the portfolio is $370 (=$100 + $120 + $150). The modified duration of the portfolio is the weighted average of the MDs of the different bonds, ie =(5 * 100/370) + (10 * 120/370) + (12 * 150/370) =
9.46.
This means that for every 1% change in interest rates, the value of the portfolio changes by 9.46%. Since the daily volatility of interest rates is 2%, the 95% confidence level move will be 1.65 * 2% = 3.30%. Thus, the VaR of the portfolio at the 95% confidence level will be 3.3 * 9.46% * $370 = $115.51.
All other answers are incorrect.

NEW QUESTION: 2
How does the system determine the proper storage bin during the putaway operation?
A. The first step is determination of storage section, then the storage type and lastly the target storage bin
B. The first step is determination of storage type, then the storage section and lastly the target storage bin
C. The first step is determination of storage bin, then the storage section and lastly the target storage type
D. None of the above
Answer: B

NEW QUESTION: 3
Jim performed a vulnerability analysis on his network and found no potential problems. He runs another utility that executes exploits against his system to verify the results of the vulnerability test. The second utility executes five known exploits against his network in which the vulnerability analysis said were not exploitable. What kind of results did Jim receive from his vulnerability analysis?
A. False negatives
B. True positives
C. True negatives
D. False positives
Answer: A
Explanation:
A false negative is when something is there, but it is not found or reported. The vulnerability scan
did not detect the vulnerability, so the vulnerability was actually there, but the scanner did not find
it.
A false positive is reporting that something is there, but it is not. If the vulnerability scanner
reported vulnerabilities that did not exist, then it would a false positive.
True Positives and True negatives occur when there are no reporting errors.