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NEW QUESTION: 1
A bank prices retail credit loans based on median default rates. Over the long run, it can expect:
A. Correct pricing of risk in the retail credit portfolio
B. Overestimation of risk and overpricing, leading to loss of market share
C. Underestimation and therefore underpricing of risk in it retail portfolio
D. A reduction in the rate of defaults
Answer: C
Explanation:
Explanation
The key to pricing loans is to make sure that the prices cover expected losses. The correct measure of expected losses is the mean, and not the median. To the extent the median is different from the mean, the loans would be over or underpriced.
The loss curve for credit defaults is a distribution skewed to the right. Therefore its mode is less than its median which is less than its mean. Since the median is less than the mean, the bank is pricing in fewer losses than the mean, which means over the long run it is underestimating risk and underpricing its loans. Therefore Choice 'd' is the correct answer.
If on the other hand for some reason the bank were overpricing risk, its loans would be more expensive than its competitors and it would lose market share. In this case however, this does not apply. Loan pricing decisions are driven by the rate of defaults, and not the other way round, therefore any pricing decisions will not reduce the rate of default.

NEW QUESTION: 2
Which of the following strategies is used to minimize the effects of a disruptive event on a company, and is created to prevent interruptions to normal business activity?
A. Disaster Recovery Plan
B. Business Continuity Plan
C. Contingency Plan
D. Continuity of Operations Plan
Answer: B

NEW QUESTION: 3
Click the Exhibit.

Your Junos device is using the configuration shown in the exhibit. You notice that the 172.17.23.10/30 address is incorrect and should be 172.17.23.9/30.
What are two commands that would solve this problem? (Choose two.)
A. [edit interfaces]
user@router# delete ge-0/0/2.0 family inet address 172.17.23.10
B. [edit interfaces]
user@router# rename ge-0/0/2.0 family inet address 172.17.23.10/30 to address 172.17.23.9/30
C. [edit interfaces]
user@router# set ge-0/0/2.0 family inet address 172.17.23.9
D. [edit interfaces]
user@router# replace pattern 172.17.23.10 with 172.17.23.9
Answer: B,D

NEW QUESTION: 4

A. Option D
B. Option A
C. Option B
D. Option C
Answer: A
Explanation:
- sys.dm_exec_requests
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- sys.dm_exec_sessions
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- sys.dm_exec_query_text
Returns the text of the SQL batch that is identified by the specified sql_handle.