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D. server-specific probe configuration
E. NetFlow probes
F. node-specific probe configuration
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A. I, II, III and IV
B. I and III
C. II, III and IV
D. II and IV
Answer: B
Explanation:
Explanation
Statement I is true as standard deviation is the root of the squared deviations, and is always positive, and identical regardless of the positions being long or short.Statement II is false as the expected return of a long position is exactly the negative of the expected return of the short position.Statement III is correct as a correlation of +1 between two long positions implies a correlation of -1 between one long and one short position. This is the basis of hedging, for example, of spot positions with futures.Statement IV is inaccurate.
The weight of an asset in a portfolio does not change the correlation of the asset with the portfolio, or with other assets.Therefore Choice 'c' is the correct answer.
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