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NEW QUESTION: 1
Brian has 80 bonds with a total market value of £2400. The interest rate on these bonds is 2.34%.
Using these figures, which of the following is the running yield of each of Brian's bonds?
A. 8.9%
B. 8.87%
C. 8.83%
D. 8.86%
Answer: B

NEW QUESTION: 2
A young man eager to become a master swordsman journeyed to the home of the greatest teacher of swordsmanship in the kingdom. He asked the teacher, "How quickly can you teach me to be a master swordsman?" The old teacher replied, "It will take ten years." Unsatisfied, the young man asked, "What if I am willing to work night and day, every day of the year?" the teacher replied, "In that case, it will take twenty years." The teacher's main point is that an important quality of a master swordsman is
A. determination
B. respect for one's elders
C. patience
D. willingness to work hard
E. humility
Answer: C
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 3
How can you determine the current store location for TemSe spool objects?
Please choose the correct answer.
A. Check the table space PSAPSPOOL in the database.
B. Check the environment variable DIR_SAPSPOOL
C. Check the value of the SAP Spooler Vault parameter.
D. Check the value of the system parameter rspo/store_location.
Answer: D

NEW QUESTION: 4
Which of the following statements is true:
I. If the sum of its parameters is less than one, GARCH is a mean reverting model of volatility, while EWMA is never mean reverting II. Standardized returns under both EWMA and GARCH show less non-normality than non standardized returns III. Steady state variance under GARCH is affected only by the persistence coefficient IV. Good risk measures are always sub-additive
A. I, II and IV
B. I & II
C. II, III and IV
D. I, II and III
Answer: A
Explanation:
Explanation
GARCH is a mean reverting model of volatility, with a steady state mean that the model reverts to in the absence of market shocks. EWMA is not mean reverting and volatility under EWMA stays constant in the absence of shocks. Therefore statement I is correct.
Both EWMA and GARCH models are designed to address volatility clustering, which explains much of the non-normality of returns. When returns are standardized to the volatility calculations under either of these methods, the returns appear far closer to the normal distribution than non-standardized returns. (If it were not to, then there would have been no point in using these techniques.) Statement II is correct.
Steady state variance under GARCH is defined as / (1 - - ), where and are the two parameters (called the reaction and persistence coefficient respectively). Clearly, it is affected by more than just the persistence coefficient, therefore statement III is not correct.
Sub-additivity is a very desired property in risk measures. It implies the sum of the parts is greater than the whole. In the case of risk measures, the whole is smaller than the sum of the parts due to diversification.
Statement IV is true.
Therefore the correct answer is Choice 'c'

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