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NEW QUESTION: 1
What is a typical scenario to gather experience data in the Quote-to-Order stage?
A. A pre-purchase product page feedback survey
B. Acomplaint in SAP Commerce Cloud
C. A post-purchase survey
D. A feedback button on the quote page
Answer: C
NEW QUESTION: 2
Barton Wilson, a junior analyst, is a new hire at a money center bank. He has been assigned to help Juanita Chevas, CFA, in the currency trading department. Together, Wilson and Chevas are working on the development of new trading software designed to detect profitable opportunities in the foreign exchange market. Obviously, they are interested in risk-free arbitrage opportunities. However, they have also been instructed to investigate the possibility of longer-term currency exposures that are not necessarily risk-free. To test the logic of their new software, Wilson gathers the following market data:
* Spot JPY/USD exchange rate = 120.
* Spot EUR/USD exchange rate = 0.7224.
* U.S. risk-free interest rate = 7%.
* Eurozone risk-free rate = 9.08%.
* Japanese risk-free rate = 3.88%.
* Yield curves in all three currencies are flat.
In addition to in-house currency transactions, the new software program is also intended to provide insight into currency exposure and hedging needs for the bank's major customers. These customers typically include large multinational firms. Essentially, the bank wants to provide consulting services to its clients concerning which currency exposures offer the greatest possibility of appreciation. In this process, the bank will rely on deviations from international parity conditions as an indicator of long-term currency movements.
Wilson obtains the following data from the econometrics department:
* JPY/USD spot rate one year ago =116.
* EUR/USD spot rate one year ago = 0.7200.
* Anticipated and historical U.S. annual inflation = 3%.
* Anticipated and historical Japanese annual inflation = 0%.
* Anticipated and historical Eurozone annual inflation = 5%.
One of the bank's major customers has significant portions of its business in Japan, and the Eurozone and has long exposure to both currencies. The customer has traditionally hedged all currency risk. However, the customer's new risk manager has decided to leave some currency exposure unhedged in an attempt to profit from long-term currency exposure.
Based on the assumption that international parity conditions will hold in the long run, should the JPY and Euro currency exposures of the bank's major customer be left unhedged?
A. Both currencies should be left unhedged.
B. One currency should be left unhedged and the other should not.
C. Neither currency should be left unhedged.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
This question requires you to look at deviations from international parity conditions and then determine whether those deviations will tend to work to the advantage of the customer. In this problem, you arc given the necessary information to examine parity conditions using relative purchasing power parity (RPPP). For the JPY, RPPP tells us that, since the spot rate one year ago was 116, the spot rate today should be (JPY is considered the foreign currency):
Since the expected spot rate today, based on RPPP (i.e., 112.62), is not equal to the actual spot rate today (i.e., 120), RPPP did not hold over the past year. Since the actual rate is higher than the rate forecast by RPPP, the long-term trend based on deviations from international parity conditions will be for the rate to fall and the JPY to appreciate. Hence, using deviations from parity conditions as indicators of future currency movements, the bank should recommend that the JPY exposure be left unhedged.
Using the same RPPP process for the EUR exposure, we can calculate an RPPP spot rate today of 0.7340 (given that the rate was 0.72 one year ago).
Again, RPPP did not hold (i.e., the actual rate today, 0.7224, is not equal to the RPPP rate that should exist today given the inflation rates). However, for the EUR case, the RPPP expected spot is higher than the actual spot, indicating that the EUR may be currently overvalued and, thus, more likely to depreciate in the future. EUR exposure should be hedged. (Study Session 4, LOS 19.g,h)
NEW QUESTION: 3
A start member reported that a laptop has (traded performance. The security analyst has investigated the issue and discovered that CPU utilization, memory utilization. and outbound network traffic are consuming the laptop resources. Which of the following is the BEST course of action to resolve the problem?
A. Identity and remove malicious processes.
B. Increase laptop memory.
C. Suspend virus scan
D. Disable scheduled tasks
E. Ensure the laptop OS is property patched
Answer: C
NEW QUESTION: 4
You have a Power BI report that displays a bar chart and a donut chart on the same page. The bar chart shows the total sales by year and the donut chart shows the total sale by category.
You need to ensure that when you select a year on the bar chart, the donut remains unchanged.
What should you do?
A. Add a slicer to the page that uses the year column.
B. Set a visual level filter on the bar chart.
C. Edit the interactions form the Format menu.
D. Set a visual level filter on the donut chart.
Answer: C
Explanation:
Explanation/Reference:
References: https://www.excelguru.ca/blog/2016/11/23/visual-interactions-in-power-bi/
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