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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. 11.76%
B. 10.00%
C. 10.53%
D. 15.79%
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 full backups with one tape sent off-site per week
B. Daily incremental backups with a weekly full backup tape sent off-site.
C. Daily full backups with all tapes sent off-site.
D. Monthly full backups with the tape sent off-site.
E. Weekly full backups with all tapes sent off-site.
Answer: B
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