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NEW QUESTION: 1
A risk analyst uses the GARCH model to forecast volatility, and the parameters he uses are = 0.001%, = 0.05 and = 0.93. Yesterday's daily volatility was calculated to be 1%. What is the long term annual volatility under the analyst's model?
A. 3.54 %
B. 0.25 %
C. 7.94 %
D. 0.22 %
Answer: A
Explanation:
Explanation
The correct answer is choice 'a'
Recall the following summary of the GARCH model. The long term variance in a GARCH model is given by
/(1 - - ). In this case, this works out to =SQRT(0.001/(1 - 0.05 - 0.93)) * SQRT(250) = 3.54%. Yesterday's volatility of 1% is irrelevant to the question.

NEW QUESTION: 2
An online retailer has a series of flash sales occurring every Friday.
Sales Traffic will increase during the sales only and the platform will handle the increased load.
The platform is a three-tier application. The web tier runs on Amazon EC2 instances behind an Application Load Balancer.
Amazon CloudFront is used to reduce web server load, but many requests for dynamic content must go to the web servers.
What should be done to the web tier to reduce costs without impacting performance or reliability?
A. Use T-series instances
B. Implement Amazon ElasticCache
C. Use Spot instances.
D. Purchase scheduled Reserved instances.
Answer: A

NEW QUESTION: 3

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