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NEW QUESTION: 1
Company XYZ has invested an increasing amount in security due to the changing threat landscape. The company is going through a cost cutting exercise and the Chief Financial Officer (CFO) has queried the security budget allocated to the Chief Information Security Officer (CISO). At the same time, the CISO is actively promoting business cases for additional funding to support new initiatives. These initiatives will mitigate several security incidents that have occurred due to ineffective controls.
A security advisor is engaged to assess the current controls framework and to provide recommendations on whether preventative, detective, or corrective controls should be implemented. How should the security advisor respond when explaining which controls to implement?
A. Corrective controls are more costly to implement, but are only needed for real attacks or high value assets; therefore, controls should only be put in place after a real attack has occurred.
B. Preventative controls are useful before an event occurs, detective controls are useful during an event, and corrective controls are useful after an event has occurred. A combination of controls can be used.
C. Detective controls are less costly to implement than preventative controls; therefore, they should be encouraged wherever possible. Corrective controls are used during an event or security incident. Preventative controls are hard to achieve in practice due to current market offerings.
D. Always advise the use of preventative controls as this will prevent security incidents from occurring in the first place. Detective and corrective controls are redundant compensating controls and are not required if preventative controls are implemented.
Answer: B

NEW QUESTION: 2
You have been asked to create a LUN on a storage array that is comprised of 7,200 rpm SATA drives. Each drive is rated at 100 IOPS. The LUN should provide a minimum of 1100 IOPS and withstand multiple drive failures using the least number of drives.
How many drives and which RAID level should you use to create this LUN?
A. 11 drives and RAID 0
B. 12 drives and RAID 5
C. 22 drives and RAID 1
D. 13 drives and RAID 6
Answer: D

NEW QUESTION: 3
Viper Motor Company, a publicly traded automobile manufacturer located in Detroit, Michigan, periodically invests its excess cash in low-risk fixed income securities. At the end of 2009, Viper's investment portfolio consisted of two separate bond investments: Pinto Corporation and Vega Incorporated.
On January 2, 2009, Viper purchased $10 million of Pinto's 4% annual coupon bonds at 92% of par. The bonds were priced to yield 5%. Viper intends to hold the bonds to maturity. At the end of 2009, the bonds had a fair value of $9.6 million.
On July I, 2009, Viper purchased $7 million of Vega's 5% semi-annual coupon mortgage bonds at par. The bonds mature in 20 years. At the end of 2009, the market rate of interest for similar bonds was 4%. Viper intends to sell the securities in the near term in order to profit from expected interest rate declines.
Neither of the bond investments was sold by Viper in 2009.
On January 1,2010, Viper purchased a 60% controlling interest in Gremlin Corporation for $900 million.
Viper paid for the acquisition with shares of its common stock.
Exhibit 1 contains Viper's and Gremlin's pre-acquisition balance sheet data.

Exhibit 2 contains selected information from Viper's financial statement footnotes.

The carrying value of Viper's investment portfolio as of December 31, 2009 is closest to:
A. $17.5 million.
B. $16.6 million.
C. $17.2 million
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Held-to-maturity securities are reported on the balance sheet at amortized cost. At the end of 2009, the Pinto bonds have a carrying value of $9,260,000 (9,200,000 issue price + 60,000 discount amortization).
The amortized discount is equal to the $60,000 difference between the interest expense of $460,000 (9,200,000 x 5%) and the $400,000 coupon payment (10,000,000 x 4%).
Trading securities are reported on the balance sheet at fair value. Ac the end of 2009, the fair value of the Vega bonds was $7,941,591 (N = 39,1 = 2, PMT = 175,000, FV = 7,000,000, Solve for PV).
Thus, at the end of 2009, the investment portfolio is reported at $17.2 million (9,260,000 Pinto bond +
7,941,591 Vega bond). (Study Session 5, LOS 21.a)

NEW QUESTION: 4
Which of the following is not a possible early warning indicator in relation to the health of a counterparty?
A. Negative publicity
B. Credit rating downgrade
C. Falling stock price
D. A decline in the counterparty's corporate debt yield
Answer: D
Explanation:
Explanation
Negative publicity, a downgrade in the credit rating, a falling stock price are all pointers to potential credit problems, and the counterparty credit monitoring group of a bank should be using these as possible early indicators of an upcoming credit health problem. A decline in the yield of the debt issued by a counterparty means its spread is declining and the health of the credit is actually improving. Therefore a decline in the counterparty's corporate debt yield cannot be used as an indicator of potential credit problems.
Choice 'c' is therefore the correct answer.