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NEW QUESTION: 1
Which of the following correctly describes survivorship bias:
A. Survivorship bias is the positive tail risk that ensures survival over the long run
B. Survivorship bias is the negative skew in returns data resulting from credits that have survived despite a high probability of default
C. Survivorship bias is the tendency for failed companies, markets or investments to be excluded from performance data.
D. Survivorship bias refers to prudent and conservative risk management
Answer: C
Explanation:
Explanation
Survivorship bias is the tendency for failed companies, funds, investments and even entire markets (eg Russian stock market returns after the Communist revolution) to be excluded from performance studies because they no longer exist. Survivorship bias results in past results looking better than they actually were as data points relating to failures are not included.
A risk manager needs to be aware of survivorship bias when basing risk analysis on historical data and should question if failures (eg failed funds, delisted companies etc) have been included in the data he or she is relying upon.

NEW QUESTION: 2
Which statements about log file rotation are true? (Choose two)
A. The /usr/sbin/logrotate program is used to create and configure settings in the /etc/logrotate.conf file.
B. Configuration files in the /etc/logrotate.d/ directory can override settings in /etc/cron.daily/logrotate.
C. The /etc/logrotate.conf file controls which log files will be compressed or deleted based on some regular interval or when the log file reaches a particular size.
D. Configuration files in the /etc/logrotate.d/ directory can override settings in /etc/logrotate.conf.
E. The /etc/cron.daily/logrotate file controls which log files will be compressed or deleted based on some regular interval or when the log file reaches a particular size.
Answer: B,C

NEW QUESTION: 3
An IBM i customer has a POWER9 processor-based server set up with a single virtual machine with an HMC.
They need to test a new version of the existing application for two weeks, separate from the production environment.
Disk capacity is currently 40%. CPU requirements are minimal.
Which is the least cost and effort option?
A. Purchase new disk for an additional virtual machine.
B. Create a virtual machine on the current server.
C. Rent a POWER9 processor-based server.
D. Rent a virtual machine in the Cloud.
Answer: B