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NEW QUESTION: 1
Mary Pierce, CFA, has just joined The James Group as a fixed income security analyst. Pierce has taken over for Katy Williams, who left The James Group to start her own investment firm. Pierce has been reviewing Williams's files, which include data on a number of securities that Williams had been reviewing.
The first file had information on several different asset-backed securities. A summary schedule that Williams had prepared is shown in Exhibit 1.
Exhibit 1: Summary Schedule
The second file included the following schedule of information relating to a specific CMO thai Williams had been considering. Exhibit 2 reflects the results of a Monte Carlo simulation based on 15% volatility of interest rates. This security is stil! available, and Pierce needs to evaluate the investment merit of any or all of the listed tranches.
A third file contained notes Williams had laken at a seminar a couple of months ago on valuing various types of asset-backed and mortgage-backed securities. These notes included the following comments that Pierce found interesting:
"Cash flow yield (CFY) is one method of valuing mortgage-backed securities. An advantage of the CFY is that it does not rely on any specific prepayment assumptions. An important weakness of CFY is the assumption that interim cash flows will be reinvested at the CFY. This is rarely true for mortgage-backed securities."
"Cash flow duration is similar to effective duration, but its weakness is that it fails to fully account for changes in prepayment rates as cash flow yields change. Empirical duration suffers two disadvantages as a measure of interest rate exposure: reliance on theoretical formulas and reliance on historical pricing data that may not exist for many mortgage-backed securities."
"The recent increase in the default rate for subprime adjustable rate mortgages can be traced to the structure of these loans. The negative amortization feature of these loans basically gave the borrower an at-the-money call option on their property. Once the property decreased in value, this call option was worthless, and the borrower had no incentive to make any additional payments." Evaluate the validity of Williams's comments regarding different duration measures. Her comments as to the weaknesses of each duration measure were:
A. correct with regard to both duration measures.
B. correct only with regard to cash flow duration.
C. correct only with regard to empirical duration.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Cash flow duration assumes that one prepayment rate will apply over the life of an MBS for whatever change in interest rates is assumed. Empirical duration is reliant on historical prices that might not be easily available, but it does NOT rely on any theoretical valuation models. The values are based on historical pricing relationships. (Study Session 15. LOS 57.h)
NEW QUESTION: 2
Your company is planning to migrate to Microsoft Exchange Online. The company employs 1,000 people, each with a mailbox currently located on Exchange 2010 on-premises. You estimate that it will take a minimum of four weeks to migrate all mailboxes from on-premises Exchange to Exchange Online.
The company has the following migration requirements:
During the migration, do not change the existing Microsoft Outlook profiles and .ost files used by the
employees.
Ensure that email messages sent between on-premises mailboxes and online mailboxes during the
migration are secure.
Do not send email messages between on-premises mailboxes and online mailboxes over the Internet in
plain text.
You need to select the migration strategy that meets the requirements.
Which migration strategy should you use?
A. Cutover migration only
B. Staged migration only
C. IMAP migration only
D. Remote move migration only
Answer: D
Explanation:
Explanation/Reference:
Explanation:
In this question, we are migrating the mailboxes over a period of time (minimum of four weeks). During the migration period, we will have a hybrid deployment where the Exchange environment exists both on- premise and online.
To meet the requirements of the question, we can use a remote move migration.
A remote move migration is used to migrate on-premises Exchange mailboxes to Exchange Online in an Exchange hybrid deployment. You must have an Exchange hybrid deployment to use a remote move migration. With a hybrid deployment, you get the following capabilities:
Even if you plan to permanently move your on-premises email organization to Exchange Online and Office
365 over a longer period of time, you can take advantage of these hybrid deployment features during the transition.
Incorrect Answers:
A: A cutover migration option is for customers who want to migrate their whole environment at one time.
B: IMAP migration is targeted at customers who may be using non-Exchange-based mail systems in their current hosted environment or have access to the data only by using the IMAP 4 protocol.
D: You can't use a staged migration to migrate Exchange 2013 or Exchange 2010 mailboxes to Office 365.
References: https://support.office.com/en-us/article/Decide-on-a-migration-path-0d4f2396-9cef-43b8-9bd6-
306d01df1e27?ui=en-US&rs=en-US&ad=US
NEW QUESTION: 3
A. Option C
B. Option A
C. Option B
D. Option D
Answer: C
Explanation:
https://en.wikipedia.org/wiki/Multi-mode_optical_fiber
NEW QUESTION: 4
A work schedule rule must include half the normal work hours on Fridays and on half-day public holidays. Absences and quota deduction are calculated in days. How would you reduce the daily quota proportionally for an absence on one of these days?
There are 3 correct answers to this question.
Response:
A. Set the counting rules to query the different holiday classes.
B. Set the counting rules to include 50% quota multiplier for hours.
C. Set the counting rules to include a 50% quota multiplier for days.
D. Set the counting rules to query different conditions for the current day.
E. Set the deduction rules to query the different holiday classes.
Answer: A,C,D