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NEW QUESTION: 1
Changes in which of the following do not affect the expected default frequencies (EDF) under the KMV Moody's approach to credit risk?
A. Changes in the risk free rate
B. Changes in the firm's market capitalization
C. Changes in the debt level
D. Changes in asset volatility
Answer: A
Explanation:
Explanation
EDFs are derived from the distance to default. The distance to default is the number of standard deviations that expected asset values are away from the default point, which itself is defined as short term debt plus half of the long term debt. Therefore debt levels affect the EDF. Similarly, asset values are estimated using equity prices.
Therefore market capitalization affects EDF calculations. Asset volatilities are the standard deviation that form a place in the denominator in the distance to default calculations. Therefore asset volatility affects EDF too.
The risk free rate is not directly factored in any of these calculations (except of course, one could argue that the level of interest rates may impact equity values or the discounted values of future cash flows, but that is a second order effect). Therefore Choice 'b' is the correct answer.
NEW QUESTION: 2
The process of identifying and documenting project roles, responsibilities, required skills, and reporting relationships and creating a staffing management plan is known
as:
A. Plan Human Resource Management.
B. Acquire Project Team.
C. Develop Project Team.
D. Manage Project Team.
Answer: A
NEW QUESTION: 3
Which form of storage has features are typically minimal. allowing you to only store, retrieve, copy and delete files as well as the ability to control which users can undertake these actions?
A. Ephemeral Storage
B. Volume Storage
C. Object Storage
D. Block Storage
Answer: C
Explanation:
Object Storage has features are typically minimal, allowing you to only store, retrieve, copy, and delete files as well as the ability to control which users can undertake these actions.
NEW QUESTION: 4
What is a benefit of using VMware Data Protection (VDP)?
A. Provides direct access to VDP configuration integrated into the vSphere Client.
B. Reduces disk space consumed by virtual machine data using deduplication.
C. Provides support for advanced storage services including replication, encryption, deduplication, and compression.
D. Provides support for guest-level backups and restores of Microsoft SQL Servers, Exchange Servers, and Share Point Servers.
Answer: B
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