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NEW QUESTION: 1
How can a system administrator secure a WebSphere Application Server environment to ensure that an application code will not be allowed to access any files in the server's file system?
A. Enable Java 2 security and configure the app.policy and was.policy files.
B. Use the AdminTask deleteAuthorizationGroup to remove application access.
C. Configure the file-based repository and create the fileRegistry.xml file.
D. Configure the CSIv2 outbound communications under RMI/IIOP security.
Answer: A
Explanation:
When Java 2 security is enabled for a WebSphere Application Server, all the applications that run on WebSphere Application Server undergo a security check before accessing system resources. An application might need a was.policy file if it accesses resources that require more permissions than those granted in the default app.policy file
NEW QUESTION: 2
A pension fund has $100m in liabilities due in the future with an average modified duration of 20 years. The fund also holds a fixed income portfolio worth $125m with an average duration of 15 years. Which of the following approaches would be best suited for the pension fund to cover its interest rate risk?
A. Enter into an interest rate swap to receive fixed and pay floating
B. Sell 15 year bond futures
C. Enter into an interest rate swap to receive floating and pay fixed
D. The pension fund does not have any interest rate risk as assets more than adequately cover its liabilities
Answer: A
Explanation:
Explanation
In this case, we need a portfolio that is "dollar duration" neutral, ie the net effect of any change in interest rates creates offsetting gains and losses in the asset and liability portfolios. The $125m asset portfolio with a duration of 15 years has a dollar-duration of $125*15/100=$18.75m, implying that a 1% change in interest rates will create a $18.75m change in the value of the asset portfolio. Similarly, the liabilities of $100m with a duration of 20 years mean that a 1% change in interest rates will lead to a $20m change in their value. Since
$18.75m<$20m, the pension fund is short duration, and needs a strategy that will give it more duration. It can do so by buying more bonds, or swapping out some of its shorter duration bonds with longer duration bonds, or doing other things that will increase the duration of the portfolio so it becomes duration neutral.
Entering into an interest rate swap to receive fixed and pay floating is like a long position in a bond, which will increase duration. Thus Choice 'b' is the correct answer.
A swap to pay fixed and receive floating will have the opposite effect, and so will selling bond futures. Choice
'c' and Choice 'a' are therefore incorrect. As we have seen, Choice 'd' is incorrect as the fund does have interest rate exposure.
NEW QUESTION: 3
A company hosts its web application on AWS using server Amazon EC2 instances. The company requires that the IP addresses of all healthy EC2 instances be refumed in response to DNS queries.
Which policy should be used to meet this requirement?
A. Geolocation routing policy.
B. Multivalue routing policy.
C. Simple routing policy.
D. Latency routing policy.
Answer: B
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