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NEW QUESTION: 1
When BGP route reflectors are used, which attribute ensures that a routing loop is not created?
A. weight
B. multiexit discriminator
C. originator ID
D. local preference
Answer: C
Explanation:
As the iBGP learned routes are reflected, routing information may loop. The route reflector model has the following
mechanisms to avoid routing loops:
* Originator ID is an optional, nontransitive BGP attribute. It is a 4-byte attributed created by a route reflector. The

attribute carries the router ID of the originator of the route in the local autonomous system. Therefore, if a
misconfiguration causes routing information to come back to the originator, the information is ignored.
* Cluster-list is an optional, nontransitive BGP attribute. It is a sequence of cluster IDs that the route has passed.

When a route reflector reflects a route from its clients to nonclient peers, and vice versa, it appends the local cluster
ID to the cluster-list. If the cluster-list is empty, a new cluster-list is created. Using this attribute, a route reflector can
identify if routing information is looped back to the same cluster due to misconfiguration. If the local cluster ID is
found in the cluster-list, the advertisement is ignored.
Reference: http://www.cisco.com/c/en/us/td/docs/ios/12_2/ip/configuration/guide/fipr_c/1cfbgp.html

NEW QUESTION: 2

A. Option A
B. Option B
C. Option D
D. Option C
E. Option E
Answer: E

NEW QUESTION: 3
The nominal required rate is determined by the inflation premium, the risk premium, and the:
A. real risk-free rate.
B. liquidity risk.
C. exchange rate impact.
D. nominal risk-free rate.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The equation for the nominal risk free rate is:
RequiredReturnnominal= [(1 + Risk-FreeRatereal) * (1 + Inflation Premium) * (1 + Risk Premium)] - 1 The market risk premium is used when determining the security market line (SML) and equals the required market return minus the nominal risk-free rate. Liquidity risk is a part of total risk which is measured by the risk premium. The exchange rate is not a factor in this calculation.