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NEW QUESTION: 1
An asset manager holds an equity portfolio valued at $25m with a beta of 0.8. She would like to reduce the beta of the portfolio to 0.6 for the next 3 months using index futures. Index futures are curently trading at
1450, and the contract multiple is 250. How should the asset manager trade the index futures to get his desired result? Assume her portfolio is well diversified.
A. Sell 14 index futures contracts
B. Buy 25 index futures contracts
C. Sell 55 index futures contracts
D. Sell 35 index futures contracts
Answer: A
Explanation:
Explanation
The portfolio's beta is 0.8, and therefore in order to completely hedge the portfolio (ie reduce beta to 0), the portfolio manager would need to short 0.8 * $25m/(1450*$250) = 55.17 contracts, or 55 contracts. However, the ask here is to reduce the beta to 0.6, and not 0.
The number of contracts required to reduce the beta of a portfolio from to is give by (- ) * Value of portfolio / Value of a single contract. In this case, this calculation works out to (0.8 - 0.6) * $25m/(1450*250) = 13.8, or roughly 14 contracts.
The portfolio manager should short 14 index futures contracts to reduce the total portfolio beta to 0.6.
NEW QUESTION: 2
Which of the following is the BEST type of program for an organization to implement to aggregate, correlate and store different log and event files, and then produce weekly and monthly reports for IS auditors?
A. A log management tool
B. An extract, transform, load (ETL) system
C. A security information event management (SIEM) product
D. An open-source correlation engine
Answer: A
Explanation:
A log management tool is a product designed to aggregate events from many log files (with distinct formats and from different sources), store them and typically correlate them offline to produce many reports (e.g., exception reports showing differentstatistics including anomalies and suspicious activities), and to answer time-based queries (e.g., how many users have entered the system between 2 a.m. and 4 a.m. over the past three weeks?). A SIEM product has some similar features. It correlatesevents from log files, but does it online and normally is not oriented to storing many weeks of historical information and producing audit reports. A correlation engine is part of a SIEM product. It is oriented to making an online correlation of events. An extract, transform, load (ETL) is part of a business intelligence system, dedicated to extracting operational or production data, transforming that data and loading them to a central repository (data warehouse or data mart); an ETL does not correlate data or produce reports, and normally it does not have extractors to read log file formats.
NEW QUESTION: 3
You have an Azure Synapse Analytics SQL pool named Pool1 on a logical Microsoft SQL server named Server1.
You need to implement Transparent Data Encryption (TDE) on Pool1 by using a custom key named key1.
Which five actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
Reference:
https://docs.microsoft.com/en-us/azure/azure-sql/managed-instance/scripts/transparent-data-encryption-byok-powershell
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