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NEW QUESTION: 1
Which of the following losses can be attributed to credit risk:
I. Losses in a bond's value from a credit downgrade
II. Losses in a bond's value from an increase in bond yields
III. Losses arising from a bond issuer's default
IV. Losses from an increase in corporate bond spreads
A. I and II
B. I and III
C. I, III and IV
D. II and IV
Answer: B
Explanation:
Explanation
Losses due to credit risk include the loss of value from credit migration and default events (which can be considered a migration to the 'default' category). Therefore Choice 'd' is the correct answer. Changes in spreads or interest rates are examples of market risk events.
[Discussion: It may be argued that losses from spreads changing could be categorized as credit risk and not market risk. The distinction between credit and market risk is never really watertight.
The reason I have called it market risk in this question is because spreads can change due to two reasons: first, due to the individual issuer going down in their credit rating (whether issued or perceived, as we have witnessed in Europe sovereign debt), and second due to the spread for the overall category changing due to macro fundamentals with nothing changing for the individual issuer. For example the spread between municipal bonds and treasuries may be small during boom times and may expand during recessions - regardless of how the individual issuer has been doing. Clearly, the first case is credit risk and the second is probably market risk.
A change in overall corporate bond spreads is something I would consider akin to a rate change - which is why I have called it as not a part of credit risk. But an alternative perspective may not be incorrect either.]
NEW QUESTION: 2
You work as a Penetration Tester for the Infosec Inc. Your company takes the projects of security auditing. Recently, your company has assigned you a project to test the security of the wearesecure.com Web site. For this, you want to perform the idle scan so that you can get the ports open in the we-are-secure.com server. You are using Hping tool to perform the idle scan by using a zombie computer. While scanning, you notice that every IPID is being incremented on every query, regardless whether the ports are open or close. Sometimes, IPID is being incremented by more than one value.
What may be the reason?
A. The zombie computer is not connected to the we-are-secure.com Web server.
B. The firewall is blocking the scanning process.
C. Hping does not perform idle scanning.
D. The zombie computer is the system interacting with some other system besides your computer.
Answer: D
NEW QUESTION: 3
N is working on a project management team for the first time and is aware that there are distinct stages that follow on consecutively in the project management process However, N is unsure of the exact order of these stages Which of the following indicate the project management stages in the correct order?
A. Planning, initiation, controlling, executing, review and close
B. Initiation. planning, controlling, executing, review and close
C. Initiation, planning, executing, controlling, review and close.
D. Planning initiation, executing, controlling, review and close
Answer: C