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NEW QUESTION: 1
You are creating a custom balance that needs to include run results of all elements associated with the regular earnings and supplemental earnings classifications.
How should you define the balance feeds to meet this requirement?
A. Create balance feeds for each element belonging to regular earnings and supplemental earnings classifications but ensure the number of feeds does not exceed 250.
B. Create balance feeds for each element belonging to regular earnings and supplemental earnings classifications.
C. Create a balance feed for the regular earnings classification and a balance feed for the supplemental earnings classification.
D. This requirement cannot be met because a balance cannot be fed by elements from more than one element classification.
Answer: C

NEW QUESTION: 2
There are three bonds in a diversified bond portfolio, whose default probabilities are independent of each other and equal to 1%, 2% and 3% respectively over a 1 year time horizon. Calculate the probability that none of the three bonds will default.
A. 2%
B. 0.11%
C. 94%
D. 0.0006%
Answer: C
Explanation:
Explanation
The probability that only none of the three bonds will default is equal to the probability of all surviving. Since default correlation is zero, we can simply multiply the probabilities of survival. Therefore the correct answer is
94% = (1 - 1%) * (1 - 2%) * (1 - 3%)

NEW QUESTION: 3

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