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Exam Code: C-PO-7517

Exam Name: SAP Certified Technology Associate - SAP Process Orchestration

Certification Provider: SAP

Related Certification: SAP Certified Technology Associate - SAP Process Orchestration

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NEW QUESTION: 1
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.

At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.

Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
Is Berg's short-term interest rate forecast consistent with the pure expectations theory and the liquidity premium theory?
A. Consistent with the liquidity premium theory only.
B. Consistent with the pure expectations theory only.
C. Consistent with both theories.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
An upward sloping yield curve predicts an increase in short-term rates according to the pure expectations theory but not necessarily the liquidity premium theory.
The liquidity theory says that forward rates are a biased estimate of the market's expectation of future rates because they include a liquidity premium. Therefore, a positive sloping yield curve may indicate either (1) that the market expects future interest rates to rise or (2) that rates are expected to remain constant (or even fall), but the addition of the liquidity premium results in a positive slope. (Study Session 14, LOS 53.e)

NEW QUESTION: 2
You need to implement Role1.
Which command should you run before you create Role1? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Topic 2, Humongous Insurance Overview
Existing Environment
Huongous Insurance is an insurance company that has three offices in Miami, Tokoyo, and Bankok. Each has 5000 users.
Active Directory Environment
Humongous Insurance has a single-domain Active Directory forest named humongousinsurance.com. The functional level of the forest is Windows Server 2012.
You recently provisioned an Azure Active Directory (Azure AD) tenant.
Network Infrastructure
Each office has a local data center that contains all the servers for that office. Each office has a dedicated connection to the Internet.
Each office has several link load balancers that provide access to the servers.
Active Directory Issue
Several users in humongousinsurance.com have UPNs that contain special characters.
You suspect that some of the characters are unsupported in Azure AD.
Licensing Issue
You attempt to assign a license in Azure to several users and receive the following error message: "Licenses not assigned. License agreement failed for one user."
You verify that the Azure subscription has the available licenses.
Requirements
Planned Changes
Humongous Insurance plans to open a new office in Paris. The Paris office will contain 1,000 users who will be hired during the next 12 months. All the resources used by the Paris office users will be hosted in Azure.
Planned Azure AD Infrastructure
The on-premises Active Directory domain will be synchronized to Azure AD.
All client computers in the Paris office will be joined to an Azure AD domain.
Planned Azure Networking Infrastructure
You plan to create the following networking resources in a resource group named All_Resources:
* Default Azure system routes that will be the only routes used to route traffic
* A virtual network named Paris-VNet that will contain two subnets named Subnet1 and Subnet2
* A virtual network named ClientResources-VNet that will contain one subnet named ClientSubnet
* A virtual network named AllOffices-VNet that will contain two subnets named Subnet3 and Title
Subnet4
You plan to enable peering between Paris-VNet and AllOffices-VNet. You will enable the Use remote gateways setting for the Paris-VNet peerings.
You plan to create a private DNS zone named humongousinsurance.local and set the registration network to the ClientResources-VNet virtual network.
Planned Azure Computer Infrastructure
Each subnet will contain several virtual machines that will run either Windows Server 2012 R2, Windows Server 2016, or Red Hat Linux.
Department Requirements
Humongous Insurance identifies the following requirements for the company's departments:
* Web administrators will deploy Azure web apps for the marketing department. Each web app will be added to a separate resource group. The initial configuration of the web apps will be identical. The web administrators have permission to deploy web apps to resource groups.
* During the testing phase, auditors in the finance department must be able to review all Azure costs from the past week.
Authentication Requirements
Users in the Miami office must use Azure Active Directory Seamless Single Sign-on (Azure AD Seamless SSO) when accessing resources in Azure.


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