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NEW QUESTION: 1
Which of the following are true:
I. Monte Carlo estimates of VaR can be expected to be identical or very close to those obtained using analytical methods if both are based on the same parameters.
II. Non-normality of returns does not pose a problem if we use Monte Carlo simulations based upon parameters and a distribution assumed to be normal.
III. Historical VaR estimates do not require any distribution assumptions.
IV. Historical simulations by definition limit VaR estimation only to the range of possibilities that have already occurred.
A. III and IV
B. All of the above
C. I, III and IV
D. I, II and III
Answer: C
Explanation:
Explanation
Statement I is true. If a Monte Carlo simulation is based upon the same parameters as used for analytical VaR, and enough number of simulations are carried out, we would get the same results as with analytical VaR.
Statement II is false. We cannot use Monte Carlo simulations using parameters based upon a normal assumption when the underlying distribution is not normal. For example, if a return stream is based upon say a uniform distribution, we cannot use a simulation based upon drawings from a normal distribution even though we use the same mean and standard deviation.
Statement III is true. This is the advantage of historical simulations - no assumptions are necessary. (Historical simulations however often suffer from the great disadvantage of the paucity of data that would cover all possibilities.) Statement IV is true. The results of historical simulations are limited to the data they are based upon.

NEW QUESTION: 2

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

NEW QUESTION: 3
A new MPLS network link has been established between a company and its business partner.
The link provides logical isolation in order to prevent access from other business partners. Which of the
following should be applied in order to achieve confidentiality and integrity of all data across the link?
A. SSL/TLS for all application flows.
B. IPSec VPN tunnels on top of the MPLS link.
C. MPLS should be run in IPVPN mode.
D. HTTPS and SSH for all application flows.
Answer: B
Explanation:
Section: Cryptography
Explanation/Reference:
Explanation:
IPSec can very well be used with MPLS. IPSec could provide VPN tunnels on top if the MPLS link.
Internet Protocol Security (IPSec) isn't a tunneling protocol, but it's used in conjunction with tunneling
protocols. IPSec is oriented primarily toward LAN-to-LAN connections, but it can also be used with dial-up
connections. IPSec provides secure authentication and encryption of data and headers; this makes it a
good choice for security.

NEW QUESTION: 4
A company wants to durably store data in 8 KB chunks. The company will access the data once every few months. However, when the company does access the data, it must be done with as little latency as possible.
Which AWS service should a Solutions Architect recommend if cost is NOT a factor?
A. Amazon ElastiCache
B. Amazon DynamoDB
C. Amazon EBS Cold HDD Volumes
D. Amazon EBS Throughput Optimized HDD Volumes
Answer: A