PRINCE2-Foundation Practice Questions

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NEW QUESTION: 1
HOTSPOT


Answer:
Explanation:

NEW QUESTION: 2
Which contact photo retrieval method is supported when using UDS as the directory for Jabber?
A. binary object retrieval of the user's jpegPhoto attribute
B. photo URI, with pictures hosted on a web server
C. binary object retrieval of the user's thumbnailPhoto attribute
D. None, contact photos are not supported with UDS.
Answer: B

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 B
C. Option D
D. Option A
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
An IBM Tivoli Storage Manager (TSM) administrator has set up and enabled Disaster Recovery Manager. The administrator wants to return tapes that are empty from the vault to the library as scratch. The administrator issues the command:
move drmedia * wherestate=vaultretrieve
None of the tapes that were in value retrieve state have been returned to scratch even though they have been placed back in the library. What caused this to happen?
A. The tapes are in COURERRETREVE state and must be moved to NOTMOUNTABLE state.
B. The tapes are in COURERRETREVE state and must be moved to MOUNTABLE state.
C. The tapes are in COURERRETREVE state and must be moved to ONSITERETREVE state.
D. The tapes are in VAULTRETRIEVE state and must be moved to COURERRETREVE state.
Answer: C