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NEW QUESTION: 1
Similar to Secure Shell (SSH-2), Secure Sockets Layer (SSL) uses symmetric encryption for encrypting the bulk of the data being sent over the session and it uses asymmetric or public key cryptography for:
A. Name Resolution
B. Peer Identification
C. Peer Authentication
D. Server Authentication
Answer: C
Explanation:
SSL provides for Peer Authentication. Though peer authentication is possible, authentication of the client is seldom used in practice when connecting to public e-commerce web sites. Once authentication is complete, confidentiality is assured over the session by the use of symmetric encryption in the interests of better performance.
The following answers were all incorrect: "Peer identification" is incorrect. The desired attribute is assurance of the identity of the communicating parties provided by authentication and NOT identification. Identification is only who you claim to be. Authentication is proving who you claim to be. "Server authentication" is incorrect. While server authentication only is common practice, the protocol provides for peer authentication (i.e., authentication of both client and server). This answer was not complete. "Name resolution" is incorrect. Name resolution is commonly provided by the Domain Name System (DNS) not SSL.
Reference(s) used for this question: CBK, pp. 496 - 497.

NEW QUESTION: 2
In a decision strategy, in order to select the proposition with the highest propensity, you use a
_______________.
A. Prioritize component, and sort propensity from highest to lowest
B. Prioritize component, and sort propensity from lowest to highest
C. Switch component, and sort propensity from lowest to highest
D. Switch component, and sort propensity from highest to lowest
Answer: A

NEW QUESTION: 3
The CDS rate on a defaultable bond is approximated by which of the following expressions:
A. Loss given default x Default hazard rate
B. Hazard rate / (1 - Recovery rate)
C. Hazard rate x Recovery rate
D. Credit spread x Loss given default
Answer: A
Explanation:
Explanation
The CDS rate is approximated by the [Loss given default x Default hazard rate]. Thus Choice 'b' is the correct answer.
Note that this is also equal to the credit spread on the reference bond over the risk free rate. Therefore credit spreads and CDS rates are generally the same. Also, 'loss given default' is nothing but (1 - Recovery rate). This can be substituted in the formula for the credit spread to get an alternative expression that directly refers to the recovery rate. Therefore all other choices are incorrect.