CWAP-404 Practice Questions

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NEW QUESTION: 1
Samuel Edson, CFA, portfolio manager for Driver Associates, employs a multifactor model to evaluate individual stocks and portfolios. Edson examines several possible risk factors and finds two that are priced in the marketplace. These two factors are investor sentiment (IS) risk and business cycle (BC) risk. Edson manages three equity portfolios (A, Bt and Q and derives the following relationships for each portfolio, as well as for the S&P 500 stock market index:

Portfolios A and B are well-diversified, while C is a less than fully diversified, value-oriented portfolio. FJS is the surprise in investor sentiment, and FBC is the surprise in the business cycle. Surprises in the risk factors are defined as the difference between the actual value and the predicted value.
Exhibit 1 provides data for the actual and predicted values for the investor sentiment and business cycle risk factors.

Driver Associates uses a two-factor Arbitrage Pricing Model to develop equilibrium expected returns for individual stocks and portfolios:

Assuming Driver Associates uses the S&P 500 index as their performance benchmark, which of the following portfolios is expected to have the least active factor risk?
A. Portfolio F.
B. Portfolio D.
C. Portfolio E.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Active factor risk is caused by deviations of a portfolio's factor sensitivities from the benchmark factor sensitivities. Deviations are quite large for both Portfolios D and E, but Portfolio F's factor sensitivities match those of the S&P 500 benchmark (1.5 and 1.25). (Study Session 18, LOS 64.m)

NEW QUESTION: 2
You are creating an app that uses Event Grid to connect with other services. Your app's event data will be sent to a serverless function that checks compliance. This function is maintained by your company.
You write a new event subscription at the scope of your resource. The event must be invalidated after 3 specific period of time. You need to configure Event Grid to ensure security.
What should you implement? To answer, select the appropriate options in [he answer area.
NOTE: Each correct selection is worth one point

Answer:
Explanation:

Explanation

Box 1: SAS tokens
Custom topics use either Shared Access Signature (SAS) or key authentication. Microsoft recommends SAS, but key authentication provides simple programming, and is compatible with many existing webhook publishers.
In this case we need the expiration time provided by SAS tokens.
Box 2: ValidationCode handshake
Event Grid supports two ways of validating the subscription: ValidationCode handshake (programmatic) and ValidationURL handshake (manual).
If you control the source code for your endpoint, this method is recommended.

NEW QUESTION: 3
Amazon Elastic Load Balancing is used to manage traffic on a fleet of Amazon EC2 instances, distributing traffic to instances across all availability zones within a region. Elastic Load Balancing has all the advantages of an on-premises load balancer, plus several security benefits.
Which of the following is not an advantage of ELB over an on-premise load balancer?
A. ELB offers clients a single point of contact, and can also serve as the first line of defense against attacks on your network.
B. ELB uses a four-tier, key-based architecture for encryption.
C. ELB takes over the encryption and decryption work from the Amazon EC2 instances and manages it centrally on the load balancer.
D. ELB supports end-to-end traffic encryption using TLS (previously SSL) on those networks that use secure HTTP (HTTPS) connections.
Answer: B
Explanation:
Amazon Elastic Load Balancing is used to manage traffic on a fleet of Amazon EC2 instances, distributing traffic to instances across all availability zones within a region. Elastic Load Balancing has all the advantages of an on-premises load balancer, plus several security benefits:
Takes over the encryption and decryption work from the Amazon EC2 instances and manages it centrally on the load balancer
Offers clients a single point of contact, and can also serve as the first line of defense against attacks on your network
When used in an Amazon VPC, supports creation and management of security groups associated with your Elastic Load Balancing to provide additional networking and security options
Supports end-to-end traffic encryption using TLS (previously SSL) on those networks that use secure
HTTP (HTTPS) connections. When TLS is used, the TLS server certificate used to terminate client connections can be managed centrally on the load balancer, rather than on every individual instance.
Reference: http://d0.awsstatic.com/whitepapers/Security/AWS%20Security%20Whitepaper.pdf

NEW QUESTION: 4
Which two InfoSphere Warehouse components are included in the logical group for the Application Server? (Choose two.)
A. WebSphere Application Server
B. IBM Data Server Client
C. Workload Management plug-in
D. Intelligent Miner Visualization
E. Design Studio
Answer: A,B