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NEW QUESTION: 1
For an investor short a bond, which of the following is true:
I. Higher convexity is preferable to lower convexity
II. An increase in yields is preferable to a decrease in yield
III. Negative convexity is preferable to positive convexity
A. I, II and III
B. I and III
C. II and III
D. I and II
Answer: C
Explanation:
Explanation
The effect of higher convexity is that when yields rise, the price decrease is lower than the increase in yields, and when yields fall, the increase in price is greater than the fall in yield. In either case, it benefits the holder of the fixed income instrument that carries such positive convexity. The converse is true for someone short a bond - such an investor would prefer lower convexity to higher convexity. Therefore statement I is not true for an investor who is short a bond.
An increase in yields makes bond prices decrease, something that would benefit the short. Therefore statement II is true for an investor short a bond.
Negative convexity has exactly the opposite effect as the one described for positive convexity for statement I above. An investor short a bond would prefer negative convexity (which by the way is exhibited by very few fixed income instruments such as mortgages) to positive convexity, therefore statement III is true for such an investor.
Choice 'b' is the correct answer.

NEW QUESTION: 2
HOTSPOT


Answer:
Explanation:

NEW QUESTION: 3
You deploy an Exchange Server 2016 organization. The organization contains two servers. The servers are configured as shown in the following table.

The default self-signed certificates are installed on both servers.
All of the users in the organization work from home and from customer locations.
You purchase a Layer 7 hardware-based load balancer. You configure SSL bridging without session affinity for Outlook on the web connections. The load balancer has an internal fully qualified domain name (FQDN) of Ib1 contoso.local.
DNS servers are configured to resolvemail.contoso.comnames to the external IP address of the load balancer.
You need to recommend which names must be included in the certificates installed on the load balancers and the Exchange servers.
What should you recommend for each certificate? To answer, select the appropriate options in the answer area.

Answer:
Explanation:

Explanation