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NEW QUESTION: 1
Financial institutions need to take volatility clustering into account:
I. To avoid taking on an undesirable level of risk
II. To know the right level of capital they need to hold
III. To meet regulatory requirements
IV. To account for mean reversion in returns
A. II, III and IV
B. I & II
C. I, II and III
D. I, II and IV
Answer: B
Explanation:
Explanation
Volatility clustering leads to levels of current volatility that can be significantly different from long run averages. When volatility is running high, institutions need to shed risk, and when it is running low, they can afford to increase returns by taking on more risk for a given amount of capital. An institution's response to changes in volatility can be either to adjust risk, or capital, or both. Accounting for volatility clustering helps institutions manage their risk and capital and therefore statements I and II are correct.
Regulatory requirements do not require volatility clustering to be taken into account (at least not yet).
Therefore statement III is not correct, and neither is IV which is completely unrelated to volatility clustering.

NEW QUESTION: 2
Which statements correctly describe the features of using subscription databases for operational loss data
analysis?
Subscription databases
I. Provide central data repositories and benchmarking services to their members.
II. Can provide insight into whether the losses in a firm reflect the usual losses in their industry.
III. Assist with mapping the events to the appropriate business lines, risk categories and causes.
IV. Reflect only events that are interesting to the press and are reported in the press.
A. I and II
B. II and III
C. I, II and III
D. II, III, and IV
Answer: B

NEW QUESTION: 3
어떤 서비스가 AWS 엣지 로케이션을 사용합니까? (2 개를 선택하십시오.)
A. Amazon RDS
B. Amazon EC2
C. AWS 쉴드
D. Amazon CloudFront
E. Amazon ElastiCache
Answer: D,E
Explanation:
Reference: https://www.edureka.co/community/600/what-is-an-edge-location-in-aws