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NEW QUESTION: 1
When hedging one fixed income security with another, the hedge ratio is determined by:
A. The yield beta and the basis point values of the hedge instrument and the security being hedged.
B. Basis point value or PV01 of the two instruments
C. The volatility of the hedge
D. The yield beta
Answer: A
Explanation:
Explanation
When hedging one fixed income security with another, the question as to how much of the hedge to buy (or sell) (ie the hedge ratio) for a given primary position is determined by their respective basis point values, which in turn are determined by their duration. Therefore, when hedging a long maturity bond with a PV01 of
$3 with a short maturity bond that has a PV of $1, we will need to buy 3 times the notional value of the short maturity bond to achieve the same sensitivity to interest rates as the longer maturity bond.
Additionally, we may also expect the interest rates on the hedge to move differently from the interest rates on the primary instrument being hedged, and this needs to be accounted for as well as part of the hedge ratio calculation. This is called the yield beta and is calculated as change in yield for primary position/change in yield for the hedge security.
The hedge ratio is determined both by the yield beta and the BPVs of the two securities. Choice 'd' is the correct answer.

NEW QUESTION: 2
As part of month-end closure, you run Accounts Payable integrity reports to validate the accuracy of your data.
Which integrity report compares the Gross Amount and the Open Amount in the Accounts Payable Ledger (F0411) to the Paid Amount in the Accounts Payable Matching Document Detail (F0414)?
A. AP to GL Integrity with Adjustments Report (R04711)
B. AP Payments to GL by Batch Report (R04702A)
C. AP Payments to GL Integrity Report (R04712)
D. AP Payments to Voucher Integrity Report (R04713)
E. AP to GL Integrity by Batch Report (R04701)
Answer: E

NEW QUESTION: 3
A new vSAN cluster needs to run 900 VMs and protect against one failure.
What is the minimum number of nodes needed to meet the requirements?
A. 0
B. 1
C. 2
D. 3
Answer: A