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Exam Code: 2016-FRR
Exam Name: Financial Risk and Regulation (FRR) Series
Vendor: GARP

60 Questions & Answers
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NEW QUESTION: 1
Your network contains an Active Directory domain. The domain contains a user named User1. The domain is synced to Azure Active Directory (Azure AD) as shown in the following exhibit.

Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation

Box 1: a computer joined in the Active Directory domain
The Active Directory domain service stores passwords in the form of a hash value representation, of the actual user password.
Box 2: Stored in both Azure AD and in the Active Director domain
The Active Directory domain service stores passwords in the form of a hash value representation, of the actual user password.
To synchronize your password, Azure AD Connect sync extracts your password hash from the on-premises Active Directory instance.
References:
https://docs.microsoft.com/en-us/azure/active-directory/hybrid/how-to-connect-password-hash-synchronization

NEW QUESTION: 2
Which of the following is a benefit of information security governance?
A. Increasing the risk of decisions based on incomplete management information.
B. Direct involvement of senior management in developing control processes
C. Reduction of the potential for civil and legal liability
D. Questioning the trust in vendor relationships.
Answer: C

NEW QUESTION: 3
Your network contains an Active Directory domain named contoso.com. The domain contains a server named Server1. Server1 is configured as a VPN server.
You need to configure Server1 to perform network address translation (NAT).
What should you do?
A. From Routing and Remote Access, add an IPv4 routing protocol.
B. From Network Connections, modify the Internet Protocol Version 4 (TCP/IPv4) setting of each network adapter.
C. From Network Connections, modify the Internet Protocol Version 6 (TCP/IPv6) setting of each network adapter.
D. From Routing and Remote Access, add an IPv6 routing protocol.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
To configure an existing RRAS server to support both VPN remote access and NAT routing:
1. Open Server Manager.
2. Expand Roles, and then expand Network Policy and Access Services.
3. Right-click Routing and Remote Access, and then click Properties.
4. Select IPv4 Remote access Server or IPv6 Remote access server, or both.

NEW QUESTION: 4
Martin Hagemann, CFA, works for a large brokerage firm in Frankfurt, Germany. Hagemann has been hired by Tryssen AG, a global research-based company that is preparing to go public after a long history of operating privately. The need to raise substantial amounts of capital to fund research and development activities is seen as the key motivation for the change in policy. Tryssen is engaged in the discovery, development, manufacture, marketing, and sale of medical products.
Hagemann's first task is to recommend an exchange upon which Tryssen stock can be traded. One possibility is the Deutsche Bourse. The Deutsche Bourse operates primarily as a continuous order-driven system. Another alternative that Tryssen is considering is to list on a different exchange that operates as a price-driven system.
As an alternative, Tryssen may choose to list as an American Depository Receipt (ADR). ADRs are negotiable U.S. securities that usually represent a non-U.S. based company's publicly traded equity.
Although typically denominated in U.S. dollars, depository receipts can also be denominated in euros.
Depository receipts can be eligible to trade on all U.S. stock exchanges as well as on many European stock exchanges.
The increasing demand for depository receipts is driven by the desire of individual and institutional investors to diversify their portfolios, reduce risk and invest internationally in the most efficient manner possible. While most investors recognize the benefits of global diversification, there are many challenges presented when investing directly in local trading markets. Obstacles can include inefficient trade settlements, uncertain custody services, and costly currency conversions. Depository receipts overcome many of the inherent operational and custodial hurdles inherent in international investing. Tryssen has decided to access the U.S. market by involving itself in an ADR program. Tryssen has decided to save itself a lot of trouble, however, by not complying with SEC registration and reporting requirements.
As an alternative to ADRs, investors interested in increasing their exposure to international investments can choose to acquire exchange traded funds (ETFs). Hagemann researches the advantages and disadvantages of ETFs.
Execution costs are always a concern, and perhaps even more so for international investors. At the present time, Tryssen AG is most concerned with how reliably it can estimate trading costs. As part of the cost estimation process, Hagemann is asked to provide a report on the advantages and disadvantages of techniques used to reduce execution costs.
Trysse AG proceeds to list on the Frankfurt exchange, and a U.S. affiliate of Hagemann's company starts to aggressively promote the stock. A U.S. investor buys 200 shares of Tryssen at a price of €20 per share.
At time of purchase, the exchange rate is €1 = $1.15. One month later Tryssen pays a dividend of €0.25 per share, and investors are subject to a withholding tax of 20%. The U.S. investor is eligible to claim a tax credit of $0.06 per share. At the time the dividend was paid, the shares had jumped to €24 each and the
U.S. dollar had weakened to €1 = $ 1.20. The shares were sold just after the dividend was paid.
Which of the following represents a correct advantage and a correct disadvantage for the indicated approach that is aimed at reducing execution costs?
A. Internal crossing can result in best execution but opportunities are rare.
B. Principal trades assure immediacy but result in large opportunity costs.
C. The use of futures reduces opportunity costs but involves additional risk.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The use of futures will reduce the opportunity cost element of execution costs but will also create basis risk if the correlation between the futures contract and the price of the traded security is low. The internal crossing technique is expected to minimize costs but it will not generate the best execution, which is generally associated with an agency trade. With external crossing, anonymity is an advantage. Finally, principal trades minimize opportunity costs. (Study Session 10, LOS 34.d)


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