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AWS Certified Solutions Architect - Associate (SAA-C02)

  • Exam Number/Code : AWS-Solutions-Associate
  • Exam Name : AWS Certified Solutions Architect - Associate (SAA-C02)
  • Questions and Answers : 213 Q&As
  • Update Time: 2019-01-10
  • Price: $ 99.00 $ 39.00

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NEW QUESTION: 1
An investor holds a portfolio of mortage backed securities valued at $100m. Using a Monte Carlo based pricing model, he determines that the value of the portfolio would rise to $102m if interest rates were to fall by
45 basis points, and fall to $97m if interest rates were to rise by 45 basis points. What is the estimated modified duration of the investor's portfolio?
A. 0
B. 11.12
C. 5.56
D. None of the above
Answer: C
Explanation:
Explanation
For fixed income portfolios where standard cash flow discounting models are not available, duration calculations are based upon estimated price moves in response to a change in rates. Recall that we define duration as the percentage change in price expected for a 1% change in yield. In this case, we have three price points known to us:
Line | Price | Yield
a | $102 | r - 45bps
b | $100 | r
c | $ 97 | r + 45bps
(where r is the current yield)
The change in price from line a to line c is $102m - $97m = $5m. We use the middle point, ie $100m, to calculate the percentage change. Therefore the percentage change in price is $5m/$100m = 5%.
The change in yield between lines a and c is 90 basis points [=(r+45bps) - (r-45bps)]. In other words, the change in price is 5% for a 90 bps change in yield. So the duration can be calculated as 5/(90/100) = 5.56. The other answers are incorrect.

NEW QUESTION: 2
Which of the following is a characteristic of a standard deviation?
A. At least 95% of the points in a data set will always be within +-2 standard deviations from the mean.
B. The standard deviation is based on the middle portion of the data.
C. The standard deviation uses all the data points from the data set in its calculation
D. The standard deviation reflects the variation of values between two points.
Answer: C

NEW QUESTION: 3
Which statement about users and user groups is correct?
A. Users do not have to belong to a user group.
B. A group can only have one main user.
C. Every user belongs to a least one user group.
D. There can be only one user group on a system.
Answer: C