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NEW QUESTION: 1
When hedging an equity portfolio with index futures that carry no basis risk, the number of futures contracts to hold is determined by:
A. the equity portfolio's beta, the value of the portfolio, and the notional value of one futures contract
B. All of the above
C. the volatility of the equity portfolio
D. the risk free rate and the systematic risk of the portfolio
Answer: A
Explanation:
Explanation
When hedging an equity portfolio with index futures, the number of futures contracts to hold is given by the
[beta x value of portfolio/value of one futures contract]. Therefore Choice 'a' is the correct answer.
The volatility, risk free rate have nothing to do with determining the number of futures contracts to hold.
Systematic risk is expressed in the form of beta. Therefore the other choices are incorrect.
NEW QUESTION: 2
A company has just deployed a centralized event log storage system. Which of the following can be used to ensure the integrity of the logs after they are collected?
A. Continuous monitoring
B. Database encryption
C. Role-based access controls
D. Write-once drives
Answer: D
NEW QUESTION: 3
What are three ways to configure a common set of recording rules for few or all the employees? (Choose three.)
A. Storage Rules
B. Employees > Voice Settings
C. Bulk Actions
D. System Configuration
E. Recording Rules
Answer: B,D,E
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