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NEW QUESTION: 1
A. Option C
B. Option A
C. Option D
D. Option B
Answer: C
NEW QUESTION: 2
A customer has established an AWS Direct Connect connection to AWS. The link is up and routes are being advertised from the customer's end, however the customer is unable to connect from EC2 instances inside its VPC to servers residing in its datacenter.
Which of the following options provide a viable solution to remedy this situation? (Choose 2 answers)
A. Modify the route table of all Instances using the 'route' command.
B. Add a route to the route table with an iPsec VPN connection as the target.
C. Enable route propagation to the virtual pinnate gateway (VGW).
D. Modify the Instances VPC subnet route table by adding a route back to the customer's on-premises environment.
E. Enable route propagation to the customer gateway (CGW).
Answer: B,E
NEW QUESTION: 3
If x is the standard deviation of the asset to be hedged, and y is the standard deviation of the asset being used to hedge against price movements in x, then the minimum variance hedge ratio is given by which of the following expressions (given that x,y is their correlation) A)
B)
C)
D)
A. Option C
B. Option A
C. Option D
D. Option B
Answer: C
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 103.10.b103.10.b. Effectively, this is the same as the beta of the primary
position with respect to the hedge.
All other choices are incorrect.
Intuitive understanding of the hedge ratio: There are two standard deviations in play here: one, the standard deviation of the asset to be hedged (x), and two, the standard deviation of the asset being used as the hedge(y).
Now assume an extreme case where both the asset to be hedged and the asset being used as the hedge have a correlation of 1. (That keeps the calculation simple.). Also assume that the std dev of the asset to be hedged is
10% annually, and that of the asset being used as a hedge is say 20%. At this point, just ignore all formulae, and think intuitively about how much of the hedge should we buy to have the same risk (in the opposite direction) as the primary position but in the opposite direction so the variation in the primary position is cancelled by opposite movements in the hedge position. Obviously, we need to buy half because the asset being used as a hedge is twice as volatile. In other words, we divided the volatility (std dev) of the primary position by the volatility of the asset being used as a hedge.In this question, x is the standard deviation of the asset to be hedged, and y is the standard deviation of the asset being used to hedge. We will need to divide x by y.
NEW QUESTION: 4
HOTSPOT
You work as a graphic designer for WEBDESIGN Inc. You are working on an image in Photoshop CS6. You want to perform exposure compensation in the image that has darkened edges caused by improper lens shading. Select the option in the Photomerge dialog box to accomplish the task.
Answer:
Explanation:
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