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NEW QUESTION: 1
Which of the following is NOT a recommended strategy when talking to a customer who has or is considering moving off Notes to a Microsoft environment?
A. Talk about the true cost of their Microsoft Enterprise Agreement
B. Engage in a discussion about how pervasive Microsoft Office is
C. Show the large number of products they would have to deploy from Microsoft just to match the capabilities of IBM Notes and Domino 9 Social Edition
D. Discuss how Microsoft regularly uses proprietary, not industry standards
Answer: B
NEW QUESTION: 2
Concentration risk in a credit portfolio arises due to:
A. A high degree of correlation between the default probabilities of the credit securities in the portfolio
B. Issuers of the securities in the portfolio being located in the same country
C. A low degree of correlation between the default probabilities of the credit securities in the portfolio
D. Independence of individual default losses for the assets in the portfolio
Answer: B
Explanation:
Explanation
Concentration risk in a credit portfolio arises due to a high degree of correlation between the default probabilities of the issuers of securities in the portfolio. For example, the fortunes of the issuers in the same industry may be highly correlated, and an investor exposed to multiple such borrowers may face 'concentration risk'.
A low degree of correlation, or independence of individual defaults in the portfolio actually reduces or even eliminates concentration risk.
The fact that issuers are from the same country may not necessarily give rise to concentration risk - for example, a bank with all US based borrowers in different industries or with different retail exposure types may not face practically any concentration risk. What really matters is the default correlations between the borrowers, for example a lender exposed to cement producers across the globe may face a high degree of concentration risk.
NEW QUESTION: 3
For each of the following statements, select Yes if the statement is true. Otherwise, select No. NOTE: Each correct selection is worth one point.
Answer:
Explanation:
