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NEW QUESTION: 1
A loan portfolio's full notional value is $100, and its value in a worst case scenario at the 99% level of confidence is $65. Expected losses on the portfolio are estimated at 10%. What is the level of economic capital required to cushion unexpected losses?
A. 0
B. 1
C. 2
D. 3
Answer: C
Explanation:
Explanation
Expected value = $90 ($100 - 10%)
Value at 99% confidence level = $65
Therefore economic capital required at this level of confidence = $90 - $65 = $25.
Choice 'a' is the correct answer, the other choices are not.
(We can also look at it this way as explained in section III.B.6.2.2 of the handbook: Economic capital is designed to absorb unexpected losses, which are equal to total losses at a given confidence level minus expected losses. (Expected losses are to be covered by credit reserves). Total losses are $100-$65=$35, and expected losses are 10%*$100=$10, therefore economic capital should be $35-$10=$25.)

NEW QUESTION: 2
How can you share Web Intelligence documents in your organization?
There are 2 correct answers to this question
Response:
A. From within the BI launch pad, send a document to another user or group of users
B. Publish documents to the CMS as a public or personal document
C. From within the BI launch pad, and sent automatically by using the sharing option to group of users
D. From within the BI launch pad, save a document as a personal document in the BIP
Answer: A,B

NEW QUESTION: 3
A company is rumored to be considering downsizing. Because a manager stops the use of all temporary employees, the staff concludes that some jobs will be lost. Which of the following is true about the manager's communication about job losses?
A. The manager properly encoded the idea in a message.
B. The staff decoded the formal communication sent by the manager correctly.
C. The channel through which the message was sent was appropriate.
D. The lack of a formal message had a negative impact on staff.
Answer: D
Explanation:
Management's lack of formal communication regarding possible downsizing caused the employees to draw their own negative conclusions based on a manager's actions. Management should formally communicate the reasons for eliminating the use of temporary employees or refute the rumor about downsizing.

NEW QUESTION: 4

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