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NEW QUESTION: 1
The effectiveness of a hedge is determined by:
A. the alpha coefficient of the linear regression between the asset being hedged and the hedge
B. the correlation between the asset being hedged and the asset being used as a hedge
C. the beta coefficient of the linear regression between the asset being hedged and the hedge
D. the correlation and standard deviation of the hedge asset
Answer: B
Explanation:
Explanation
The effectiveness of the hedge is solely determined by the correlation between the position being hedged, and the position being used as the hedge. A hedge can be perfect when correlation is 1, and will be less than perfect when it is anything other than 1.The effectiveness of the optimal hedge is given by the formula (1-2), where is the correlation between the two. Therefore Choice 'a' is the correct answer. Standard deviations affect the hedge ratio, not the effectiveness of the hedge.
(Note: In other texts, hedge effectiveness is explained to be measured by , which is essentially the same as (1-
2), both expressions being functions of . You can use either, being aware that one measures the variance explained, and the other is a measure of the unexplained variance.)

NEW QUESTION: 2
Which command do you enter to configure your firewall to conceal internal addresses?
A. no proxy-arp
B. no ip inspect audit-trail
C. no ip directed-broadcast
D. no ip logging facility
E. ni ip inspect
F. no ip source-route
Answer: A

NEW QUESTION: 3
Which two are valid BASED UPON CONNECTION attributes for a trusted context? (Choose two.)
A. Date and time
B. Application program name
C. System authorization id
D. Database role
E. Data stream encryption
Answer: C,E

NEW QUESTION: 4
A change in credit policy has caused an increase in sales, an increase in discounts taken, a reduction in
the investment in accounts receivable, and a reduction in the number of doubtful accounts. Based upon
this information, we know that:
A. Net profit has increased.
B. The size of the discount offered has decreased.
C. Gross profit has declined.
D. The average collection period has decreased.
Answer: D
Explanation:
Choice "b" is correct. Whenever accounts receivable (AR) are decreasing when sales are increasing (and
the decrease in AR is not due to an increase in bad debt write offs), this would indicate that the average
collection period for AR has decreased. Choices "a", "c", and "d" are incorrect. There is insufficient
information in the question to draw conclusions about these items.