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NEW QUESTION: 1
Which of the following equations results in the Single Loss Expectancy for an asset?
A. Annualized Rate of Occurrence x Annualized Loss Expectancy
B. Annualized Rate of Occurrence / Annualized Loss Expectancy
C. Asset Value x % Of Loss From Realized Vulnerability
D. Asset Value x % Of Loss From Realized Threat
E. Asset Value x % Of Loss From Realized Exposure
Answer: D

NEW QUESTION: 2
The following three hosts are being put into a virtualization cluster for a new project initiative:

As more VMs are deployed to the cluster, which of the following virtualization technologies is MOST likely to report an error with this configuration?
A. High availability
B. Hyperthreading
C. Memory overcommitment
D. Ballooning
Answer: D

NEW QUESTION: 3
Hedgehog International has numerous foreign exchange transactions. Management has elected to hedge
transactions as a means of mitigating transaction exposure to exchange rate risk. What is the most
effective means that Hedgehog International can use to avoid overhedging?
A. Hedgehog should acquire parallel loans to provide a means for liquidating unneeded hedge securities.
B. Hedgehog should enter into a cross hedging agreement.
C. Hedgehog should acquire the maximum amount required to hedge known and projected transactions.
D. Hedgehog should acquire the minimum amount required to hedge known transactions.
Answer: D
Explanation:
Choice "c" is correct. Hedgehog should only acquire the minimum amount of hedge contracts needed to
offset the effect of known transactions. Choice "a" is incorrect. Parallel loans represent a swap contract
for hedging long-term transaction exposure and are not specifically designed to mitigate the risk of
overhedging. Choice "b" is incorrect. Acquisition of the maximum number of hedge contracts for known
and projected transactions exposes the organization to greater risk of overhedging since projected
transactions might not materialize. Choice "d" is incorrect. Cross hedging involves techniques related to
currencies that do have hedge instruments available to mitigate risk and are not specifically designed to
avoid overhedging.