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NEW QUESTION: 1
A route to the same destination is received from two different BGP sources.
Which criterion is considered first to determine the active BGP route?
A. local preference
B. cluster length
C. lowest RID
D. AS-path length
Answer: A

NEW QUESTION: 2
Campaigns can be tied to which beacons types?
A. unplaced proximity beacon
B. placed location beacon
C. placed proximity beacon
D. unplaced location beacon
Answer: C

NEW QUESTION: 3
Which two of these statements regarding RSTP are correct? (Choose two.)
A. RSTP cannot operate with PVST+.
B. RSTP defines no new port states.
C. RSTP is a proprietary implementation of IEEE 802.1D STP.
D. RSTP is compatible with the original IEEE 802.1D STP.
E. RSTP defines new port roles.
Answer: D,E

NEW QUESTION: 4
An investor holds a portfolio of mortage backed securities valued at $100m. Using a Monte Carlo based pricing model, he determines that the value of the portfolio would rise to $102m if interest rates were to fall by
45 basis points, and fall to $97m if interest rates were to rise by 45 basis points. What is the estimated modified duration of the investor's portfolio?
A. 5.56
B. None of the above
C. 11.12
D. 0
Answer: A
Explanation:
Explanation
For fixed income portfolios where standard cash flow discounting models are not available, duration calculations are based upon estimated price moves in response to a change in rates. Recall that we define duration as the percentage change in price expected for a 1% change in yield. In this case, we have three price points known to us:
Line | Price | Yield
a | $102 | r - 45bps
b | $100 | r
c | $ 97 | r + 45bps
(where r is the current yield)
The change in price from line a to line c is $102m - $97m = $5m. We use the middle point, ie $100m, to calculate the percentage change. Therefore the percentage change in price is $5m/$100m = 5%.
The change in yield between lines a and c is 90 basis points [=(r+45bps) - (r-45bps)]. In other words, the change in price is 5% for a 90 bps change in yield. So the duration can be calculated as 5/(90/100) = 5.56. The other answers are incorrect.

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