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Refer to the exhibit.

What is the best way to decompose one end-to-end business process into a collaboration of Experience, Process, and System APIs?
A) Handle customizations for the end-user application at the Process API level rather than the Experience API level

B) Allow System APIs to return data that is NOT currently required by the identified Process or Experience APIs

C) Always use a tiered approach by creating exactly one API for each of the 3 layers (Experience, Process and System APIs)

D) Use a Process API to orchestrate calls to multiple System APIs, but NOT to other Process APIs

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

Network Access Protection (NAP) enables administrators to control access to network resources based on a computer's:
A. Configuration
B. Physical location
C. Encryption level
D. Warranty
Answer: A
Network Access Protection (NAP) is a new set of operating system components included with the Windows Server 2008 and Windows Vista operating systems that provides a platform to help ensure that client computers on a private network meet administrator-defined requirements for system health. NAP policies define the required configuration and update status for a client computer's operating system and critical software. For example, computers might be required to have antivirus software with the latest signatures installed, current operating system updates installed, and a host-based firewall enabled. By enforcing compliance with health requirements, NAP can help network administrators mitigate some of the risk caused by improperly configured client computers that might be exposed to viruses and other malicious software.

Which of the following formulae describes CVA (Credit Valuation Adjustment)? All acronyms have their usual meanings (LGD=Loss Given Default, ENE=Expected Negative Exposure, EE=Expected Exposure, PD=Probability of Default, EPE=Expected Positive Exposure, PFE=Potential Future Exposure)
C. LGD * EE * PD
Answer: B
The correct definition of CVA is LGD * EPE * PD. All other answers are incorrect.
CVA reflects the adjustment for counterparty default on derivative and other trading book transactions. This reflects the credit charge, that neeeds to be reduced from the expected value of the transaction to determine its true value. It is calculated as a product of the loss given default, the probability of default and the average weighted exposure of future EPEs across the time horizon for the transaction.
The future exposures need to be discounted to the present, and occasionally the equations for CVA will state that explicitly. Similarly, in some more advanced dynamic models the correlation between EPE and PD is also accounted for. The conceptual ideal though remains the same: CVA=LGD*EPE*PD.

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