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NEW QUESTION: 1
Financial institutions need to take volatility clustering into account:
I. To avoid taking on an undesirable level of risk
II. To know the right level of capital they need to hold
III. To meet regulatory requirements
IV. To account for mean reversion in returns
A. I, II and III
B. II, III and IV
C. I & II
D. I, II and IV
Answer: C
Explanation:
Explanation
Volatility clustering leads to levels of current volatility that can be significantly different from long run averages. When volatility is running high, institutions need to shed risk, and when it is running low, they can afford to increase returns by taking on more risk for a given amount of capital. An institution's response to changes in volatility can be either to adjust risk, or capital, or both. Accounting for volatility clustering helps institutions manage their risk and capital and therefore statements I and II are correct.
Regulatory requirements do not require volatility clustering to be taken into account (at least not yet).
Therefore statement III is not correct, and neither is IV which is completely unrelated to volatility clustering.
NEW QUESTION: 2
Refer to the exhibit.
Why are the Enterprise Vault archives 0 kb in size after an Enterprise Vault discovery is performed?
A. the source account lacks Read & Write permissions on the archives of interest
B. the source account lacks Read permissions on the archives of interest
C. the EsaEvCrawlerSerivce account lacks Read permissions on the archives of interest
D. the EsaEvRetrieverService account lacks Read & Write permissions on the archives of interest
Answer: C
NEW QUESTION: 3
Which of the following should be the FIRST consideration when a business unit wants to use personal information for a purpose other than for which it was originally collected?
A. Informed consent
B. Business impact analysis (BIA)
C. Cross border controls
D. Data breach protection
Answer: A
NEW QUESTION: 4
Select and Place:
Answer:
Explanation:
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ARC-801 Exam Info
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