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Exam Code: 050-6205-ARCHERPRO01

Exam Name: RSA Archer Professional Exam

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NEW QUESTION: 1
What is NOT an advantage of Packet Filtering?
A. Low Security and No Screening above Network Layer
B. High Performance
C. Scalability
D. Application Independence
Answer: A
Explanation:
Explanation/Reference:
Explanation: Packet Filter Advantages and Disadvantages

Reference: https://www.checkpoint.com/smb/help/utm1/8.2/7078.htm

NEW QUESTION: 2
Which of the following are considered properties of a 'coherent' risk measure:
I. Monotonicity
II. Homogeneity
III. Translation Invariance
IV. Sub-additivity
A. All of the above
B. II and IV
C. II and III
D. I and III
Answer: B
Explanation:
Explanation
All of the properties described are the properties of a 'coherent' risk measure.
Monotonicity means that if a portfolio's future value is expected to be greater than that of another portfolio, its risk should be lower than that of the other portfolio. For example, if the expected return of an asset (or portfolio) is greater than that of another, the first asset must have a lower risk than the other. Another example:
between two options if the first has a strike price lower than the second, then the first option will always have a lower risk if all other parameters are the same. VaR satisfies this property.
Homogeneity is easiest explained by an example: if you double the size of a portfolio, the risk doubles. The linear scaling property of a risk measure is called homogeneity. VaR satisfies this property.
Translation invariance means adding riskless assets to a portfolio reduces total risk. So if cash (which has zero standard deviation and zero correlation with other assets) is added to a portfolio, the risk goes down. A risk measure should satisfy this property, and VaR does.
Sub-additivity means that the total risk for a portfolio should be less than the sum of its parts. This is a property that VaR satisfies most of the time, but not always. As an example, VaR may not be sub-additive for portfolios that have assets with discontinuous payoffs close to the VaR cutoff quantile.

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