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NEW QUESTION: 1
A bank extends a loan of $1m to a home buyer to buy a house currently worth $1.5m, with the house serving as the collateral. The volatility of returns (assumed normally distributed) on house prices in that neighborhood is assessed at 10% annually. The expected probability of default of the home buyer is 5%.
What is the probability that the bank will recover less than the principal advanced on this loan; assuming the probability of the home buyer's default is independent of the value of the house?
A. 0
B. More than 1%
C. More than 5%
D. Less than 1%
Answer: D
Explanation:
Explanation
The bank will not be able to recover the principal advanced on this loan if both the home buyer defaults, and the house value falls to less than $1m, ie the price moves adversely by more than $500k, which is
$-500k/$150k = -3.33. (Note that 150k is the 1 year volatility in dollars, ie $1.5m * 10%).
The probability of both these things happening together is just the product of the two probabilities, one of which we know to be 5%. The other is also certainly a small number, and intuitively it is clear that the probability of both the things happening together will be less than 1%.
For a more precise answer, we can calculate the probability of the house price falling by 3.33 standard deviations by calculating the area under the standard normal curve to the left of -3.33. This indeed is a very small number (actually equal to NORMSINV(-3.33)=0.00043), which when multiplied by the probability of default of the home buyer at 5% is certainly going to be less than 1%. Therefore Choice 'b' is the correct answer.
NEW QUESTION: 2
あなたはプロジェクトオーナーであり、アプリケーションの新しいバージョンをAppEngineにデプロイするために同僚が必要です。 Googleの推奨プラクティスに従いたい。同僚にどのIAMロールを付与する必要がありますか？
A. App Engine Deployer
B. AppEngineサービス管理者
C. プロジェクトエディター
D. AppEngineコードビューア
Answer: A
Explanation:
A is not correct because this access is too wide, and Google recommends least-privilege. Also Google recommends predefined roles instead of primitive roles like Project Editor.
B is not correct because although it gives write access to module-level and version-level settings, users cannot deploy a new version.
C is correct because this gives write access only to create a new version.
D is not correct because this is read-only access.
https://cloud.google.com/iam/docs/understanding-roles
NEW QUESTION: 3
DRAG DROP
Answer:
Explanation:
NEW QUESTION: 4
On the Job Data Work Location tab for a new hire, Company is a required field. You can default Company from the table.
A. Job Code
B. Location
C. Position Data
D. Holiday Schedule
E. Business Unit
Answer: C