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NEW QUESTION: 1
Changes in which of the following do not affect the expected default frequencies (EDF) under the KMV Moody's approach to credit risk?
A. Changes in the debt level
B. Changes in the firm's market capitalization
C. Changes in asset volatility
D. Changes in the risk free rate
Answer: D
Explanation:
Explanation
EDFs are derived from the distance to default. The distance to default is the number of standard deviations that expected asset values are away from the default point, which itself is defined as short term debt plus half of the long term debt. Therefore debt levels affect the EDF. Similarly, asset values are estimated using equity prices.
Therefore market capitalization affects EDF calculations. Asset volatilities are the standard deviation that form a place in the denominator in the distance to default calculations. Therefore asset volatility affects EDF too.
The risk free rate is not directly factored in any of these calculations (except of course, one could argue that the level of interest rates may impact equity values or the discounted values of future cash flows, but that is a second order effect). Therefore Choice 'b' is the correct answer.

NEW QUESTION: 2
Which is the main characteristic of LTE architecture comparing to other mobile architectures?
A. Introduces a hierarchical model with connection-oriented service requirements and one-to-one relationships.
B. Provides supports to deploy Layer 3 MPLS VPN model, where other mobile architectures do not support.
C. Offers node redundancy with the static route configured on the IP NodeB using the HSRP/VRRP virtual ip address.
D. Provides a simpler, less hierarchical model with the capability of simplistically distributing the core gateways.
Answer: D

NEW QUESTION: 3
You use a Microsoft SQL Server 2012 database that contains two tables named SalesOrderHeader and SalesOrderDetail. The indexes on the tables are as shown in the exhibit. (Click the Exhibit button.)

You write the following Transact-SQL query:

You discover that the performance of the query is slow. Analysis of the query plan shows table scans where the estimated rows do not match the actual rows for SalesOrderHeader by using an unexpected index on SalesOrderDetail.
You need to improve the performance of the query.
What should you do?
A. Update statistics on SalesOrderId on both tables.
B. Use a FORCESEEK hint in the query.
C. Add a clustered index on SalesOrderId in SalesOrderHeader.
D. Use a FORCESCAN hint in the query.
Answer: A
Explanation:
References: http://msdn.microsoft.com/en-us/library/ms187348.aspx