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NEW QUESTION: 1

A. Option C
B. Option E
C. Option D
D. Option A
E. Option B
Answer: A,B,C

NEW QUESTION: 2
When doing stress tests based on historical scenarios, if no appropriate historical scenarios exist for a security, it is most INAPPROPRIATE to:
A. Leave the position unshocked
B. Estimate a shock factor based upon extrapolation
C. Estimate a shock factor based on other instruments that might be considered as proxies for such a security
D. Estimate a shock factor based upon interpolation
Answer: A
Explanation:
Explanation
Where a historical shock factor does not exist for a security, for example because the security is new or was only thinly traded earlier, or because a particular emerging market was immature at the time of the historical scenario being considered, it is inappropriate to leave the position unshocked. By and large, the general rule to be followed when carrying out stress testing is to leave no position unshocked. Therefore Choice 'b' is the correct answer.
Choice 'd', Choice 'a' and Choice 'c' all represent valid approaches to estimating a shock factor in such cases.

NEW QUESTION: 3
You must store data that other engineers must analyze with Microsoft Excel. Which file storage format should you use?
A. TDM
B. Tab-delimited ASCII
C. Datalog
D. Custom binary format
Answer: B