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NEW QUESTION: 1
Which of the following is not true about profiling in Cisco ISE?
A. Cisco ISE does not support hierarchy within the profiling policy.
B. Cisco ISE comes with predefined profiles.
C. The use of Identity Groups is required to leverage the use of profiling in the authorization policy.
D. Profiling policies are automatically enabled for use.
Answer: A

NEW QUESTION: 2
Kylie Autumn, CFA, is a consultant with Tri-Vision Group. Robert Lullum, Senior Vice President ai Langsford Investments, has asked for assistance with the evaluation of mortgage-backed and collateralized mortgage obligation (CMO) derivative securities for potential inclusion in several client portfolios. Langsford Investments mainly deals with equity investments and REITs, but the company recently purchased a small firm that invests mainly in fixed-income securities.
Lullum has done some research on the appropriate spread measures and option valuation models for fixed-income securities and wants to clarify some points. He wants to know if the following statements are correct:
Statement 1: The proper spread measure for option-free corporate bonds is the nominal spread.
Statement 2: Callable corporate bonds and mortgage-backed securities should be measured using the option-added spread.
Statement 3: The Z-spread is appropriate for credit card ABS and auto loan ABS.
While Lullum meets with Autumn, Janet Van Ark, CFA charterholder and equity-income portfolio manager for Langsford, is attempting to purchase bonds that may also provide her with equity exposure in the future. She has decided to analyze an 8% annual coupon bond with exactly 20 years to maturity. The bonds are convertible into 10 common shares for each $ 1,000 of par (face) value. The bond's market price is $920, and the common stock has a market price of $40. Van Ark estimates that the stock will increase in value to $70 within the next two years. The stock's annual dividend is $0.40 per share, and the market yield on comparable non-convertible bonds'is 9.5%.
Carl Leighton, a Langsford analyst and Level 2 CFA candidate, works with mortgage-backed and other asset-based securities. He provides Lullum with a list of credit enhancements for asset-backed securities, which includes letters of credit, excess servicing spread funds, overcollateralization, and bond insurance.
Lullum then asks him for a status report of the firm's exposure to paythrough securities. He also asks Leighton to calculate the single-monthly mortality rate (SMM) and estimate the prepayment for the month for a seasoned mortgage pool with a $500,000 principal balance remaining. The scheduled monthly principal payment is $ 150 and the conditional prepayment rate (CPR) is 7%.
Which of the following statements about interest-only (10) and principal-only (PO) strips is least accurate?
A. IO cash flows start out large and diminish over time. As a result, 10 investors are most concerned with extension risk.
B. In general, the volatility of the combined 10 and PO strips equals the price volatility of the source passthrough.
C. The 10 price is positively related to interest rates, and at low current rates, POs exhibit some negative convexity.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
IO investors want prepayments to be slow and thus are more concerned with contraction risk.
Interest-only strips: An interest-only (IO) strip receives all interest payments from the underlying mortgage pool. If market interest rates increase, prepayments will fall. This results in larger than expected principal balances and, thus, larger than expected interest payments. Hence. IO strips have higher realized returns when interest rates increase. If interest rates fall, the pool tends to prepay and interest payments fall, resulting in lower returns to the IO strip.
Principal-only strips: A principal-only (PO) strip receives only the principal payments (both scheduled and prepayments) from the underlying pool of mortgages. If interest rates fall, prepayments increase. Since the PO strips arc discount securities, larger than expected prepayments result in the early return of principal and thus a higher return on the security. Increasing interest rates result in lower than expected prepayments (i.e., extension risk) and lower actual returns.
Volatility: Both IOs and POs have greater price volatility than the passthrough from which they were derived. This occurs because the IO and PO returns are negatively correlated (they respond in opposite directions to changes in interest rates), but the volatility of the combined IO and PO strips equals the price volatility of the source passthrough.
(Study Session 15, LOS 55-i)

NEW QUESTION: 3
The Market Place on a VxRail Manager is empty on a newly deployed system. Testing shows that the Internet is reachable through proxy in the management network.
Which action should be taken to correct this situation?
A. Manually add the proxy information in the VxRail Manager configuration
B. Reset the appliance and redeploy with proxy information filled in the deployment process.
C. Upgrade to latest version and add proxy configuration manually.
D. VxRail Manager has no proxy support.
Answer: A

NEW QUESTION: 4
Heather has been tasked with setting up and implementing VPN tunnels to remote offices. She will most likely be implementing IPsec VPN tunnels to connect the offices. At what layer of the OSI model does an IPsec tunnel function on?
A. They work on the session layer.
B. They work on the network layer
C. They function on either the application or the physical layer.
D. They function on the data link layer
Answer: B


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