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NEW QUESTION: 1
A retail client of yours is interested in knowing how low an annual return a major stock index might have, as a once in a twenty year event. The index in question has had an annual return of 11% with a standard deviation of 22%. You believe these returns have been normally distributed. What is the low return that could be expected once in twenty years?
A. -11.0%.
B. -32.1%.
C. -25.2%.
Answer: C
Explanation:
Once in twenty years is 1/20 = 5%. So the client seeks the 5th percentile return. This could be obtained by computing a 95% confidence interval. However, since our information will be based at the mean, we should seek the 90% confidence interval, where the other 10% is split between the lower and upper bounds of the distribution. That way, we can obtain the lower 5% figure. The lower bound of the
9 0% confidence interval `is 11% - 22%*1.645 = -25.2%.

NEW QUESTION: 2
IBM PureApplication System gives you the ability to augment your virtual applications with different qualities of service by way of policies. Which of the following policies are applicable to virtual applications? (Choose three.)
A. WS-Policy
B. Scaling policy
C. Log policy
D. Routing Policy
E. SLA Policy
Answer: B,C,D

NEW QUESTION: 3

A. True
B. False
Answer: A