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NEW QUESTION: 1
Which three statements about HSRP operation are true? (Choose three.)
A. HSRP supports only clear-text authentication.
B. HSRP supports up to 255 groups per interface, enabling an administrative form of load balancing.
C. The HSRP virtual IP address must be the same as one of the router's interface addresses on the LAN.
D. The HSRP default timers are a 3 second hello interval and a 10 second dead interval.
E. The virtual IP address and virtual MA+K44C address are active on the HSRP Master router.
F. The HSRP virtual IP address must be on a different subnet than the routers' interfaces on the same LAN.
Answer: B,D,E
Explanation:
The virtual MAC address of HSRP version 1 is 0000.0C07.ACxx, where xx is the HSRP group number in hexadecimal based on the respective interface. For example, HSRP group 10 uses the HSRP virtual MAC address of 0000.0C07.AC0A. HSRP version 2 uses a virtual MAC address of
0000.0C9F.FXXX (XXX: HSRP group in hexadecimal)
NEW QUESTION: 2
A. Option A
B. Option B
C. Option C
D. Option E
E. Option D
Answer: A
Explanation:
2-5 - Policy Interpretation
NEW QUESTION: 3
Martha Garret, CFA, manages fixed income portfolios for Jones Brothers, Inc. (JBI). JBI has been in the portfolio management business for over 23 years and provides investors with access to actively managed equity and fixed-income portfolios. All of JBI's fixed-income portfolios are constructed using U.S. debt instruments. Garret's primary portfolio responsibilities are the Quasar Fund and the Nova Fund, both of which are long fixed-income portfolios consisting of Treasury securities in all maturity ranges. The Quasar Fund holdings as of March 15 are provided in Exhibit 1. A comparison of key rate durations for the Quasar Fund and Nova Fund is provided in Exhibit 2.
Of particular importance to Garret and her colleagues is the degree of interest rate risk exposure unique to each portfolio under JBI's management. Driving the increased awareness of the portfolios' interest rate exposure is the double digit growth in assets under management that JBI's fixed-income portfolios have experienced in the last five years. Interest in the company's fixed-income portfolios continues to grow and as a result, all portfolio managers are required to attend weekly meetings to discuss key portfolio risk factors. At the last meeting, Miranda Walsh, a principal at JBI, made the following comments:
"The variance of daily interest rate changes has been trending higher over the last three months leading us to believe that a period of high volatility is approaching in the next twelve to eighteen months. However, the reliability is questionable since the volatility estimates were derived using an option pricing model, which assumes constant interest rates."
"Also, the Treasury spot rate curve currently has a similar shape to the yield curve on Treasury coupon securities, which, according to the market segmentation theory of interest rate term structure, indicates a relatively high level of demand from investors for intermediate term securities. Overzealous trading by investors unwilling to move into other maturity ranges may create mispricing and opportunities for arbitrage." After the meeting, Walsh and JBI's other principals met to discuss a new international portfolio opportunity.
At Walsh's suggestion, the principals selected Garret as the lead portfolio manager for the new fund, which will be titled the Atlantic Fund. One of the other portfolio managers, Greg Terry, CFA, suggested to Garret that she utilize the LIBOR swap curve as a benchmark for the Atlantic fund rather than using local government yield curves. Terry justifies his suggestion by claiming that "the lack of government regulation in the swap market makes swap rates and curves directly comparable between different countries despite fewer maturity points with which to construct the curve as compared to a government yield curve.
Furthermore, credit risk in the swap curves of various countries is similar, thus avoiding the complications associated with different levels of sovereign risk embedded in government yield curves." Intrigued by the idea of using the swap curve, Garret has her assistant begin gathering a range of current and forward LIBOR rates.
Which of the following statements regarding the effects of interest rate changes on the Quasar Fund and Nova Fund is most accurate? The value of the:
A. Quasar Fund would suffer a smaller percentage loss from a positive butterfly yield curve shift in which all interest rates increase than would the Nova Fund.
B. Quasar Fund would suffer a smaller percentage loss from a steepening twist of the yield curve in which all interest rates increased than would the Nova Fund.
C. Nova Fund would enjoy a smaller percentage gain from a negative butterfly yield curve shift in which all interest rates decrease than would the Quasar Fund.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In a negative butterfly shift in which all interest rates decrease, the long-term and short-term interest rates will decrease by a greater amount than will the intermediate-term interest rates. The Quasar fund has a very large interest rate sensitivity (as measured by the 30-year key rate duration) to long-term interest rates. Therefore, if the interest rates at the long end decrease by a greater amount than intermediate-term rates, the effect on the value of the Quasar Fund will be greater than the effect on the Nova Fund, which has large exposure to intermediate-term rates but much less exposure to long-term rates. Recall that a decrease in interest rates causes the value of a fixed-income security to rise. Thus, the percentage gain in the value of the Quasar Fund will be greater than the Nova Fund in this scenario. (Study Session 14, LOS
53-0
NEW QUESTION: 4
An administrator has been asked to configure active/passive HA for a pair of Palo Alto Networks NGFWs.
The administrator assigns priority 100 to the active firewall.
Which priority is collect tot the passive firewall?
A. 0
B. 1
C. 2
D. 3
Answer: A
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