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NEW QUESTION: 1
Which technical feature of blockchain best promotes the notion of a blockchain being "censorship resistant"?
A. Permissions-based transactions
B. Consensus systems through Proof of Work and Proof of Stake
C. An immutable ledger of transactions
D. Smart Contracts/transactional code that is executed "on chain"
Answer: C
NEW QUESTION: 2
There are two bonds in a portfolio, each with a market value of $50m. The probability of default of the two bonds over a one year horizon are 0.03 and 0.08 respectively. If the default correlation is zero, what is the one year expected loss on this portfolio?
A. $5.5m
B. $5.26m
C. $11m
D. $1.38m
Answer: A
Explanation:
Explanation
The probabilities of default of the two bonds are independent (as indicated by a zero default correlation). The various possible states of the portfolio are as follows:
First bond defaults, and the second does not: Probability * Loss = 0.03*0.92 * $50m = $1.38m Second bond defaults, and the first does not: Probability * Loss = 0.97*0.08 * $50m = $3.88m Both bonds default: Probability * Loss = 0.03*0.08 * $100m = $0.24m Thus total expected loss on this portfolio = $5.5m. Since recovery rates are not provided, those should be assumed to be zero.
There is an easier way to solve this as well: default correlation does not affect expected losses, but their volatility. You can calculate the expected losses of the two bonds and add them up, ie, $50m*0.03 + $50m
*0.08 = $5.5m
NEW QUESTION: 3
You host a static website on Cloud Storage. Recently, you began to include links to PDF files on this site. Currently, when users click on the links to these PDF files, their browsers prompt them to save the file onto their local system. Instead, you want the clicked PDF files to be displayed within the browser window directly, without prompting the user to save the file locally. What should you do?
A. Enable `Share publicly' on the PDF file objects.
B. Set Content-Type metadata to application/pdf on the PDF file objects.
C. Add a label to the storage bucket with a key of Content-Type and value of application/pdf.
D. Enable Cloud CDN on the website frontend.
Answer: B
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