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NEW QUESTION: 1
What is "cloud bursting"?
A. An organization can provision public cloud services to use during periods of stress of its internal IT resources.
B. A private cloud can transform physical workloads into virtual workloads.
C. A cloud deployment exhausts its infrastructure resources.
D. Two public cloud providers work in conjunction to load balance requests from a consumer.
Answer: A

NEW QUESTION: 2
Which statement about Cisco VM-FEX technology is true?
A. VIC CNAs provide software-based switching of traffic to and from virtual machine interfaces.
B. VM-FEX eliminates the need for VMware integration and virtual machine management performed
through the VMware vCenter.
C. VM-FEX requires a Cisco VIC CNA and supports only static vNICs and single-OS deployments.
D. The Cisco VICs supports up to 1024 dynamic virtual adapters and interfaces.
E. VM-FEX collapses virtual and physical networking infrastructure into a single infrastructure that is fully
aware of the virtual machine locations and networking policies.
Answer: E

NEW QUESTION: 3
Jonathan Weil, CFA, is the managing director of Weil Capital Management (WCM). Weil has decided to reevaluate the asset backed security (ABS) positions in his investors' portfolios since a recent, and severe, credit problem in the subprime lending industry has had ripple effects on other fixed-income markets. Weil expects the interest rate term structure to remain flat, but shift upward as credit terms tighten. Weil has asked one of his analysts, Vanessa Ordon, to assist him in analyzing potential ABS investments, including some products he is unfamiliar with.
Ordon provides an assessment of ABS backed by auto loans, credit card receivables, and closed end home equity loans. Ordon has assembled the following information on the collateral, credit enhancements, and prepayment risk associated with each type of ABS.

Ordon has also assembled the following information on the structure of a closed end home equity loan (HEL) asset backed security. Ordon has presented the security to Weil as a potential investment opportunity, but Weil is concerned about its default and prepayment risks. The HEL ABS does not have a shifting interest mechanism.

Ordon has also developed an assessment of mortgage backed securities (MBS). Ordon has assembled the following information related to a mortgage backed security.
The prepayment speed on the home equity loan ABS has been constant at 200 PPC. If the prepayment rate suddenly increased to 350 PPC, which of the following tranches would have the largest contraction?
A. Tranche C.
B. Tranche B.
C. Tranche D.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
If the prepayment speed has been a constant 200 PPC (or 200% of the prospectus payment curve), then Tranches A, B, and C have been receiving principal payments as scheduled. This occurs since the prepayment speed falls within the PAC collar. Tranche D is a designated support tranche for the PAC tranches and will absorb excess prepayments in order to maintain the scheduled prepayments for the PAC tranches. This type of structure is known as prepayment tranching (i.e., one or more tranches absorbs faster or slower prepayments to decrease the prepayment risk of other tranches). The PAC II tranche (Tranche C) could potentially absorb a greater amount of prepayments since PAC II tranches also support the PAC I tranches. Since prepayments have been within the initial collar up to this point, however, it is less likely that excess prepayments would be large enough to wipe out Tranche D, thereby forcing Tranche C to absorb excess prepayments. Tranche D will have the greatest contraction since it has no prepayment protection mechanisms in place. (Study Session 15. LOS 56.b,e)