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NEW QUESTION: 1
Under the contingent claims approach to measuring credit risk, which of the following factors does NOT affect credit risk:
A. Maturity of the debt
B. Cash flows of the firm
C. Leverage in the capital structure
D. Volatility of the firm's asset values
Answer: B
Explanation:
Explanation
Under the contingent claims approach, credit risk is modeled as the value of a put option on the value of the firm's assets with a strike equal to the face value of the debt and maturity equal to the maturity of the obligation. The cost of credit risk is determined by the leverage ratio, the volatility of the firm's assets and the maturity of the debt. Cash flows are not a part of the equation. Therefore Choice 'a' is the correct answer.
NEW QUESTION: 2
The correlation coefficient, also known as the linear correlation coefficient, is used to measure the linear relationship between two variables, which is a real number greater than zero.
A. True
B. False
Answer: B
NEW QUESTION: 3
Stealth addresses are designed to do which of the following?
A. Conceal transaction recipient
B. Conceal transaction amount
C. Conceal shared secret
D. Conceal transaction sender
Answer: A
NEW QUESTION: 4
The correct crontab entry to execute the script chklog three times per month between 3
p.m.
and 5 p.m.:
A. 3 3,4,5 1 * * chklog
B. 0 15,16,17 1 * * chklog
C. * 15,16,17 1 * * chklog
D. * 3,4,5 1 * * chklog
E. 3 15,16,17 * * * chklog
Answer: B
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