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NEW QUESTION: 1
Alpha Bank determined that Delta Industrial Machinery Corporation has 2% change of default on a one-year
no-payment of USD $1 million, including interest and principal repayment. The bank charges 3% interest rate
spread to firms in the machinery industry, and the risk-free interest rate is 6%. Alpha Bank receives both
interest and principal payments once at the end the year. Delta can only default at the end of the year. If Delta
defaults, the bank expects to lose 50% of its promised payment.
What may happen to the Delta's initial credit parameter and the value of its loan if the machinery industry
experiences adverse structural changes?
A. Probability of default and loss at default may decrease simultaneously, while duration rises causing the
loan value to decrease.
B. Probability of default and loss at default may decrease simultaneously, while duration falls causing the
loan value to decrease.
C. Probability of default and loss at default may increase simultaneously, while duration rises causing the
loan value to decrease.
D. Probability of default and loss at default may increase simultaneously, while duration falls causing the
loan value to decrease.
Answer: D

NEW QUESTION: 2







A. No
B. Yes
Answer: A

NEW QUESTION: 3
In a vSphere environment, two resource pools are created as shown in the Exhibit.

Each VM is configured with 1 GB of memory. When the administrator tried to power on VM3, the operation failed.
What action in the resource pool settings will allow VM3 to power on successfully?
A. Increase the CPU Reservation
B. Deselect Expandable Memory Reservation
C. Deselect Expandable CPU Reservation.
D. Increase Memory Reservation.
Answer: D