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NEW QUESTION: 1
Which certificate authority is used for identity source real time certificate validation?
Answer:
Explanation:
OCSP
NEW QUESTION: 2
If the cumulative default probabilities of default for years 1 and 2 for a portfolio of credit risky assets is 5% and 15% respectively, what is the marginal probability of default in year 2 alone?
A. 15.79%
B. 10.00%
C. 10.53%
D. 11.76%
Answer: C
Explanation:
Explanation
One way to think about this question is this: we are provided with two pieces of information: if the portfolio is worth $100 to start with, it will be worth $95 at the end of year 1 and $85 at the end of year 2. What it is asking for is the probability of default in year 2, for the debts that have survived year 1. This probability is
$10/$95 = 10.53%. Choice 'b' is the correct answer.
Note that marginal probabilities of default are the probabilities for default for a given period, conditional on survival till the end of the previous period. Cumulative probabilities of default are probabilities of default by a point in time, regardless of when the default occurs. If the marginal probabilities of default for periods 1, 2... n are p1, p2...pn, then cumulative probability of default can be calculated as Cn = 1 - (1 - p1)(1-p2)...(1-pn). For this question, we can calculate the probability of default for year 2 as [1 - (1 - 5%)(1 - 10.53%)] = 15%.
NEW QUESTION: 3
What backup arrangement should be used for an intranet web server the contents of which is updated fairly regularly by different staff?
A. Daily incremental backups with a weekly full backup tape sent off-site.
B. Weekly full backups with all tapes sent off-site.
C. Daily full backups with one tape sent off-site per week
D. Monthly full backups with the tape sent off-site.
E. Daily full backups with all tapes sent off-site.
Answer: A
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