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NEW QUESTION: 1
Which of the following statements are true for a portfolio of two assets:
I. Given volatility, weights and correlation, combined standard deviation cannot be calculated without additional information on covariances.
II. When the two assets are perfectly negatively correlated, the standard deviation of the combined portfolio is just the weighted average of their standard deviations, weighted by their weights in the portfolio.
III. When the two assets are uncorrelated, the standard deviation of the combined portfolio is just the weighted average of their standard deviations, weighted by their weights in the portfolio.
IV. When the two assets are perfectly positively correlated, the standard deviation of the combined portfolio is just the weighted average of their standard deviations, weighted by their weights in the portfolio.
A. IV
B. II and IV
C. All of the above
D. I and III
Answer: A
Explanation:
Explanation
Given volatility, weights and correlation, we do not need any additional information on covariances - and therefore statement I is incorrect.
To evaluate the other statements, consider the formula for portfolio variance (recalling that standard deviation is just the square root of the variance) portfolio_var_diff_corr Statement II is incorrect because this statement describes what the standard deviation of the portfolio would be if the assets were to be perfectly positively correlated (here they are negatively correlated).
Statement III is incorrect. When the two assets are uncorrelated (ie correlation = 0), the combined standard deviation is the square root of the weighted sum of variances, where the squares of the asset weights are used as weights (see formula above).
Statement IV is correct. When the assets are perfectly positively correlated, they are effectively the same asset and the combined standard deviation of a portfolio of such assets is nothing but the sum of their weighted standard deviations.
Also refer to the tutorial (and the Excel model - you will find it under Exam 2) for portfolio variances to see how portfolio volatility behaves when correlations are -1, 0 or +1.

NEW QUESTION: 2
Your company uses Azure SQL Database and Azure Blob storage.
All data at rest must be encrypted by using the company's own key. The solution must minimize administrative effort and the impact to applications which use the database.
You need to configure security.
What should you implement? To answer, select the appropriate option in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation

Box 1: transparent data encryption
TDE with customer-managed keys in Azure Key Vault allows to encrypt the Database Encryption Key (DEK) with a customer-managed asymmetric key called TDE Protector. This is also generally referred to as Bring Your Own Key (BYOK) support for Transparent Data Encryption.
Note: Transparent data encryption encrypts the storage of an entire database by using a symmetric key called the database encryption key. This database encryption key is protected by the transparent data encryption protector.
Transparent data encryption (TDE) helps protect Azure SQL Database, Azure SQL Managed Instance, and Azure Data Warehouse against the threat of malicious offline activity by encrypting data at rest. It performs real-time encryption and decryption of the database, associated backups, and transaction log files at rest without requiring changes to the application.
Box 2: Storage account keys
You can rely on Microsoft-managed keys for the encryption of your storage account, or you can manage encryption with your own keys, together with Azure Key Vault.
References:
https://docs.microsoft.com/en-us/azure/sql-database/transparent-data-encryption-azure-sql
https://docs.microsoft.com/en-us/azure/storage/common/storage-service-encryption

NEW QUESTION: 3
This file defines which plan is to be used for calculating each employee assignment.
Please choose the correct answer.
Response:
A. Eligibility file
B. Business Goals
C. Bonus plans
D. Employee History Data
Answer: A