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NEW QUESTION: 1
If the full notional value of a debt portfolio is $100m, its expected value in a year is $85m, and the worst value of the portfolio in one year's time at 99% confidence level is $60m, then what is the credit VaR?
A. $25m
B. $60m
C. $15m
D. $40m
Answer: A
Explanation:
Explanation
Credit VaR is the difference between the expected value of the portfolio and the value of the portfolio at the given confidence level. Therefore the credit VaR is $85m - $ 60m = $25m. Choice 'b' is the correct answer.
Note that economic capital and credit VaR are identical at a risk horizon of one year. Therefore if the question asks for economic capital, the answer would be the same.
[Again, an alternative way to look at this is to consider the explanation given in III.B.6.2.2: Credit Var = Q(L)
- EL where Q(L) is the total loss at a given confidence interval, and EL is the expected loss. In this case Q(L) -
$100-$60 = $40, and EL = $100-$85=$15. Therefore Credit VaR = $40-$15=$25.]
NEW QUESTION: 2
Ann, a user, reports her display is too dim. Which of the following should be checked to potentially increase the brightness of the display?
A. Increase the screen resolution settings
B. Monitor power supply cable
C. Laptop function key settings
D. Desktop power supply wattage
Answer: C
NEW QUESTION: 3
After encrypting all laptop hard drives, an executive officer's laptop has trouble booting to the operating system. Now that it is successfully encrypted the helpdesk cannot retrieve the data.
Which of the following can be used to decrypt the information for retrieval?
A. Private key
B. Recovery agent
C. Public key
D. Trust models
Answer: B
Explanation:
Explanation/Reference:
Explanation:
To access the data, the hard drive need to be decrypted. To decrypt the hard drive, you would need the proper private key. The key recovery agent can retrieve the required key.
A key recovery agent is an entity that has the ability to recover a key, key components, or plaintext messages as needed.
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