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NEW QUESTION: 1
The effectiveness of a hedge is determined by:
A. the correlation between the asset being hedged and the asset being used as a hedge
B. the alpha coefficient of the linear regression between the asset being hedged and the hedge
C. the correlation and standard deviation of the hedge asset
D. the beta coefficient of the linear regression between the asset being hedged and the hedge
Answer: A
Explanation:
Explanation
The effectiveness of the hedge is solely determined by the correlation between the position being hedged, and the position being used as the hedge. A hedge can be perfect when correlation is 1, and will be less than perfect when it is anything other than 1.The effectiveness of the optimal hedge is given by the formula (1-2), where is the correlation between the two. Therefore Choice 'a' is the correct answer. Standard deviations affect the hedge ratio, not the effectiveness of the hedge.
(Note: In other texts, hedge effectiveness is explained to be measured by , which is essentially the same as (1-
2), both expressions being functions of . You can use either, being aware that one measures the variance explained, and the other is a measure of the unexplained variance.)

NEW QUESTION: 2



A. Option E
B. Option D
C. Option F
D. Option C
E. Option A
F. Option B
Answer: C,E
Explanation:
Explanation
If you need to connect two computers but you don't have access to a network and can't set up an ad hoc network, you can use an Ethernet crossover cable to create a direct cable connection.
Generally speaking, a crossover cable is constructed by reversing (or crossing over) the order of the wires inside so that it can connect two computers directly. A crossover cable looks almost exactly like a regular Ethernet cable (a straight-through cable), so make sure you have a crossover cable before following these steps.
Both devices need to be on the same subnet, and since one PC is using 192.1.1.20 and the other is using
192.1.1.201, the subnet mask should be changed to 255.255.255.0.

NEW QUESTION: 3
During which phase of an IT system life cycle are security requirements developed?
A. Functional design analysis and Planning
B. Operation
C. Initiation
D. Implementation
Answer: A
Explanation:
Explanation/Reference:
The software development life cycle (SDLC) (sometimes referred to as the System Development Life Cycle) is the process of creating or altering software systems, and the models and methodologies that people use to develop these systems.
The NIST SP 800-64 revision 2 has within the description section of para 3.2.1:
This section addresses security considerations unique to the second SDLC phase. Key security activities for this phase include:
* Conduct the risk assessment and use the results to supplement the baseline security controls;
* Analyze security requirements;
* Perform functional and security testing;
* Prepare initial documents for system certification and accreditation; and
* Design security architecture.
Reviewing this publication you may want to pick development/acquisition. Although initiation would be a decent choice, it is correct to say during this phase you would only brainstorm the idea of security requirements. Once you start to develop and acquire hardware/software components then you would also develop the security controls for these. The Shon Harris reference below is correct as well.
Shon Harris' Book (All-in-One CISSP Certification Exam Guide) divides the SDLC differently:
Project initiation
Functional design analysis and planning
System design specifications
Software development
Installation
Maintenance support
Revision and replacement
According to the author (Shon Harris), security requirements should be developed during the functional design analysis and planning phase.
SDLC POSITIONING FROM NIST 800-64

SDLC Positioning in the enterprise
Information system security processes and activities provide valuable input into managing IT systems and their development, enabling risk identification, planning and mitigation. A risk management approach involves continually balancing the protection of agency information and assets with the cost of security controls and mitigation strategies throughout the complete information system development life cycle (see Figure 2-1 above). The most effective way to implement risk management is to identify critical assets and operations, as well as systemic vulnerabilities across the agency. Risks are shared and not bound by organization, revenue source, or topologies. Identification and verification of critical assets and operations and their interconnections can be achieved through the system security planning process, as well as through the compilation of information from the Capital Planning and Investment Control (CPIC) and Enterprise Architecture (EA) processes to establish insight into the agency's vital business operations, their supporting assets, and existing interdependencies and relationships.
With critical assets and operations identified, the organization can and should perform a business impact analysis (BIA). The purpose of the BIA is to relate systems and assets with the critical services they provide and assess the consequences of their disruption. By identifying these systems, an agency can manage security effectively by establishing priorities. This positions the security office to facilitate the IT program's cost-effective performance as well as articulate its business impact and value to the agency.
SDLC OVERVIEW FROM NIST 800-64
SDLC Overview from NIST 800-64 Revision 2

NIST 800-64 Revision 2 is one publication within the NISTstandards that I would recommend you look at for more details about the SDLC. It describe in great details what activities would take place and they have a nice diagram for each of the phases of the SDLC. You will find a copy at:
http://csrc.nist.gov/publications/nistpubs/800-64-Rev2/SP800-64-Revision2.pdf DISCUSSION:
Different sources present slightly different info as far as the phases names are concerned.
People sometimes gets confused with some of the NIST standards. For example NIST 800-64 Security Considerations in the Information System Development Life Cycle has slightly different names, the activities mostly remains the same.
NIST clearly specifies that Security requirements would be considered throughout ALL of the phases. The keyword here is considered, if a question is about which phase they would be developed than Functional Design Analysis would be the correct choice.
Within the NIST standard they use different phase, howeverr under the second phase you will see that they talk specifically about Security Functional requirements analysis which confirms it is not at the initiation stage so it become easier to come out with the answer to this question. Here is what is stated:
The security functional requirements analysis considers the system security environment, including the enterprise information security policy and the enterprise security architecture. The analysis should address all requirements for confidentiality, integrity, and availability of information, and should include a review of all legal, functional, and other security requirements contained in applicable laws, regulations, and guidance.
At the initiation step you would NOT have enough detailed yet to produce the Security Requirements. You are mostly brainstorming on all of the issues listed but you do not develop them all at that stage.
By considering security early in the information system development life cycle (SDLC), you may be able to avoid higher costs later on and develop a more secure system from the start.
NIST says:
NIST`s Information Technology Laboratory recently issued Special Publication (SP) 800-64, Security Considerations in the Information System Development Life Cycle, by Tim Grance, Joan Hash, and Marc Stevens, to help organizations include security requirements in their planning for every phase of the system life cycle, and to select, acquire, and use appropriate and cost-effective security controls.
I must admit this is all very tricky but reading skills and paying attention to KEY WORDS is a must for this exam.
References:
HARRIS, Shon, All-In-One CISSP Certification Exam Guide, McGraw-Hill/Osborne, Fifth Edition, Page 956 and
NIST S-64 Revision 2 at http://csrc.nist.gov/publications/nistpubs/800-64-Rev2/SP800-64-Revision2.pdf and
http://www.mks.com/resources/resource-pages/software-development-life-cycle-sdlc-system-development

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