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NEW QUESTION: 1
A bond manager holding $1m long in a bond portfolio is concerned that interest rates might rise over the next three months. Which of the following represents the best hedging strategy for the manager?
A. Sell bond futures so that the notional value of the futures contracts matches that of the bonds he holds
B. Buy bond futures so that the notional value of the futures contracts matches that of the bonds he holds
C. Sell bond futures so that the dollar duration of the futures contracts matches that of the bonds he holds
D. Sell bond futures so that the market value of the futures contracts matches that of the bonds he holds
Answer: C
Explanation:
Explanation
The duration matched hedge is the best hedge for the bond manager. Matched durations in the bond portfolio and the hedge positions will ensure that any decline in the bond portfolio due to interest rate changes is matched by a rise in the futures position. Hedging dollar-to-dollar will not work unless the bonds and the futures contracts are identical in duration terms. For example, if the duration of the portfolio is 7 years, and each futures contract has a duration of 3.5 years, then selling $1m in value will only cover half the risk. Choice
'b' is the right answer.
NEW QUESTION: 2
A work center has one machine that is operated for one shift per day. The shop runs an 8hour shift 5 days per week. Machine utilization has been 60% with efficiency at 80%. A routing through this work center has a standard run time of .10 hours per piece. Job number 1234 is for 200 pieces. If the utilization is improved to 80%, the difference in calculated lead time for the job is how many days?
A. 2.7
B. 1.0
C. 2.1
D. 1.3
Answer: D
NEW QUESTION: 3
Which of the following statements describes the use of the Filed Extractor (FX)?
A. Fields extracted using the Field Extractor do not persist and must be defined for each search.
B. The Field Extractor automatically extracts all field at search time.
C. Field extracted using the Extracted persist as knowledge objects.
D. The Field Extractor uses PERL to extract field from the raw events.
Answer: C
NEW QUESTION: 4
HOTSPOT
A company requires secure communication between virtual machines (VMs) without exposing credentials. The security officer wants to perform proof-of-concept testing using managed service identities.
You need to recommend a solution for performing proof of concept testing.
What should you recommend?
Answer:
Explanation:
Enabled Managed Service Identity on the VM.
Create a Service Principal in Azure Active Directory (Azure AD)
Get the connection string and use it to call Azure Resource Manager
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