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NEW QUESTION: 1
An asset has a volatility of 10% per year. An investment manager chooses to hedge it with another asset that has a volatility of 9% per year and a correlation of 0.9. Calculate the hedge ratio.
A. 0
B. 0.9
C. 1.2345
D. 0.81
Answer: A
Explanation:
Explanation
The minimum variance hedge ratio answers the question of how much of the hedge to buy to hedge a given position. It minimizes the combined volatility of the primary and the hedge position. The minimum variance hedge ratio is given by the expression [ (x) / (y) ] * (x,y)]. Effectively, this is the same as the beta of the primary position with respect to the hedge.
In this case, the hedge ratio is = 10%/9% * 0.9 = 1

NEW QUESTION: 2
A security analyst receives an alert from a WAF with the following payload:
var data= "<test test test>" ++ <../../../../../../etc/passwd>"
Which of the following types of attacks is this?
A. JavaScript data insertion
B. Buffer overflow
C. Cross-site request forgery
D. SQL injection
E. Firewall evasion script
Answer: A

NEW QUESTION: 3
Your customer wants to automate off-cycle payroll tasks such as printing forms, execution of posting run,
and printing checks. Which tool is best suited for this ?
Note: Please choose the correct answer.
A. Off-Cycle Workbench
B. Interface Toolbox
C. HR Process Workbench
D. Payroll control record
Answer: C

NEW QUESTION: 4
Controls should be defined during the design phase of system development because:
A. technical specifications are defined during this phase.
B. structured programming techniques require that controls be designed before coding begins.
C. it is more cost-effective to determine controls in the early design phase.
D. structured analysis techniques exclude identification of controls.
Answer: A