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CATV612X-MEK Braindumps VCE
  • Exam Code: CATV612X-MEK
  • Exam Name: V6 CATIA V6 Mechanical Design (V6R2012X)

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NEW QUESTION: 1
Changes in which of the following do not affect the expected default frequencies (EDF) under the KMV Moody's approach to credit risk?
A. Changes in the debt level
B. Changes in asset volatility
C. Changes in the firm's market capitalization
D. Changes in the risk free rate
Answer: D
Explanation:
Explanation
EDFs are derived from the distance to default. The distance to default is the number of standard deviations that expected asset values are away from the default point, which itself is defined as short term debt plus half of the long term debt. Therefore debt levels affect the EDF. Similarly, asset values are estimated using equity prices.
Therefore market capitalization affects EDF calculations. Asset volatilities are the standard deviation that form a place in the denominator in the distance to default calculations. Therefore asset volatility affects EDF too.
The risk free rate is not directly factored in any of these calculations (except of course, one could argue that the level of interest rates may impact equity values or the discounted values of future cash flows, but that is a second order effect). Therefore Choice 'b' is the correct answer.

NEW QUESTION: 2
You are building a model to predict whether or not it will rain on a given day. You have thousands of input features and want to see if you can improve training speed by removing some features while having a minimum effect on model accuracy. What can you do?
A. Combine highly co-dependent features into one representative feature.
B. Remove the features that have null values for more than 50% of the training records.
C. Instead of feeding in each feature individually, average their values in batches of 3.
D. Eliminate features that are highly correlated to the output labels.
Answer: A

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