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NEW QUESTION: 1
Which of the following statements is true:
I. Recovery rate assumptions can be easily made fairly accurately given past data available from credit rating agencies.
II. Recovery rate assumptions are difficult to make given the effect of the business cycle, nature of the industry and multiple other factors difficult to model.
III. The standard deviation of observed recovery rates is generally very high, making any estimate likely to differ significantly from realized recovery rates.
IV. Estimation errors for recovery rates are not a concern as they are not directionally biased and will cancel each other out over time.
A. III and IV
B. I, II and IV
C. II and IV
D. II and III
Answer: D
Explanation:
Explanation
Recovery rates vary a great deal from year to year, and are difficult to predict. Therefore statement III is true.
Similarly, any attempt to predict these is hamstrung by a high standard error, which can be as high as the historical mean itself. The error does not cancel itself out due to the effect of the business cycle making the error directionally biased. Thus statement IV is false.
Statement II is true as these are all factors that make forecasting recovery rates for any credit risk model rather difficult. Statement I is false because recovery rates are difficult to predict and assumptions are not easy to make.

NEW QUESTION: 2
A male client is scheduled for a liver biopsy. In preparing him for this test, the nurse should:
A. Practice with him so he will be able to hold his breath for 1 minute
B. Explain that he will be receiving a laxative to prevent a distended bowel from applying pressure on the liver
C. Explain that he will be kept NPO for 24 hours before the exam
D. Explain that his vital signs will be checked frequently after the test
Answer: D
Explanation:
Explanation/Reference:
Explanation:
(A) There is no NPO restriction prior to a liver biopsy. (B) The client would need to hold his breath for 5-10 seconds. (C) There is no pretest laxative given. (D) Following the test, the client is watched for hemorrhage and shock.

NEW QUESTION: 3
Which two statements are correct regarding the security policy parameter policy-rematch?
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A. Configuration changes to the action field of a policy from permit to either deny or reject cause all existing sessions to continue.
B. Configuration changes to the action field of a policy from permit to either deny or reject cause all existing sessions to drop.
C. Configuration changes to existing policies cause re-evaluation of current sessions.
D. Configuration changes to existing policies do not impact current sessions.
Answer: B,C

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