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NEW QUESTION: 1
An investor holds a bond portfolio with three bonds with a modified duration of 5, 10 and 12 years respectively. The bonds are currently valued at $100, $120 and $150. If the daily volatility of interest rates is
2%, what is the 1-day VaR of the portfolio at a 95% confidence level?
A. 163.11
B. 115.51
C. 0
D. 1
Answer: B
Explanation:
Explanation
The total value of the portfolio is $370 (=$100 + $120 + $150). The modified duration of the portfolio is the weighted average of the MDs of the different bonds, ie =(5 * 100/370) + (10 * 120/370) + (12 * 150/370) =
9.46.
This means that for every 1% change in interest rates, the value of the portfolio changes by 9.46%. Since the daily volatility of interest rates is 2%, the 95% confidence level move will be 1.65 * 2% = 3.30%. Thus, the VaR of the portfolio at the 95% confidence level will be 3.3 * 9.46% * $370 = $115.51.
All other answers are incorrect.

NEW QUESTION: 2
Which type of Fibre Channel (FC) ports do the labels "X" and "Y" represent in the exhibit?

A. X is an N_Port and Y is an N_Port
B. X is an F_Port and Y is an E_Port
C. X is an E_Port and Y is an N_Port
D. X is an F_Port and Y is an F_Port
Answer: A

NEW QUESTION: 3
What is the correct sequence of steps required to deploy a Dell EMC UnityVSA?

Answer:
Explanation: