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E-S4HCON2023 Test Fee & SAP Latest E-S4HCON2023 Exam Pass4sure - E-S4HCON2023 Reliable Exam Syllabus - Sugakumaster

E-S4HCON2023

Exam Code: E-S4HCON2023

Exam Name: SAP Certified Technology Specialist - SAP S/4HANA Conversion and SAP System UpgradeCertification

Version: V16.75

Q & A: 400 Questions and Answers

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NEW QUESTION: 1

A. Option C
B. Option B
C. Option A
D. Option D
Answer: A

NEW QUESTION: 2

A. Option C
B. Option A
C. Option B
D. Option D
Answer: B

NEW QUESTION: 3
In the case of historical volatility weighted VaR, a higher current volatility when compared to historical volatility:
A. will increase the confidence interval
B. will increase the VaR estimate
C. will decrease the VaR estimate
D. will not affect the VaR estimate
Answer: B
Explanation:
Explanation
When calculating volatility weighted VaR, returns are adjusted by a factor equal to the current volatility divided by the historical volatility, ie the volatility that existed during the time period the returns were earned.
If the current volatility is greater than the historical volatility (also called contemporary volatility), then it has the effect of increasing the magnitude of any past returns (whether positive or negative). This in turn increases the VaR.
Consider an example: if the current volatility is 2%, and a return of -5% was earned at a time when the volatility was 0.8%, then the volatility weighted return would be 12.5% (=-5% x 2%/0.8%). Clearly, this has the effect of increasing the VaR.
Choice 'd' is therefore the correct answer.

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