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Exam Code: NSE7_OTS-6.4
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NEW QUESTION: 1
Which of the following statements is true:
I. If the sum of its parameters is less than one, GARCH is a mean reverting model of volatility, while EWMA is never mean reverting II. Standardized returns under both EWMA and GARCH show less non-normality than non standardized returns III. Steady state variance under GARCH is affected only by the persistence coefficient IV. Good risk measures are always sub-additive
A. I & II
B. I, II and III
C. I, II and IV
D. II, III and IV
GARCH is a mean reverting model of volatility, with a steady state mean that the model reverts to in the absence of market shocks. EWMA is not mean reverting and volatility under EWMA stays constant in the absence of shocks. Therefore statement I is correct.
Both EWMA and GARCH models are designed to address volatility clustering, which explains much of the non-normality of returns. When returns are standardized to the volatility calculations under either of these methods, the returns appear far closer to the normal distribution than non-standardized returns. (If it were not to, then there would have been no point in using these techniques.) Statement II is correct.
Steady state variance under GARCH is defined as / (1 - - ), where and are the two parameters (called the reaction and persistence coefficient respectively). Clearly, it is affected by more than just the persistence coefficient, therefore statement III is not correct.
Sub-additivity is a very desired property in risk measures. It implies the sum of the parts is greater than the whole. In the case of risk measures, the whole is smaller than the sum of the parts due to diversification.
Statement IV is true.
Therefore the correct answer is Choice 'c'
NEW QUESTION: 2
Which factor should be considered for selecting the chassis?
A. Number of access ports
C. Power type
NEW QUESTION: 3
米国東部の場所にVault1という名前のAzure Key Vaultを作成します。
Vault1を使用して、Azure Disk Encryptionを有効にできる仮想マシンを特定する必要があります。
Your key vault and VMs must reside in the same Azure region and subscription.
NEW QUESTION: 4
Zu welcher Azure AD-Rolle sollten Sie Benutzer4 hinzufügen, um die Sicherheitsanforderungen zu erfüllen?
A. Privilegierter Rollenadministrator
C. Globaler Administrator
User4 must be able to reset User3 password.
User3 is assigned the Customer Lockbox Access Approver role. Only global admins can reset the passwords of people assigned to this role as it's considered a privileged role.
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