Exam Code: 350-501
Exam Name: Implementing and Operating Cisco Service Provider Network Core Technologies
Version: V13.25
Q & A: 72 Questions and Answers
350-501 Free Demo download
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NEW QUESTION: 1
Of the following VPN Community options, which is most likely to provide a balance between IKE compatibility to VPN-capable devices (Check Point and non-Check Point) and preserving resources on the R71 Gateway? VPN tunnel sharing per:
A. subnet, permanent tunnels, Diffie-Hellman Group 1 for Phase 1.
B. pair of hosts, no permanent tunnels, Diffie-Hellman Group 1 for Phase 1.
C. subnet, no permanent tunnels, Diffie-Hellman Group 2 for Phase 1.
D. pair of hosts, permanent tunnels, Diffie-Hellman Group 2 for Phase 1.
Answer: C
NEW QUESTION: 2
Theresa Ponder and Rod Owens are analysts for a multinational investment bank, Datko Bank, based in Canada. Datko's clients have been advised to diversify globally, due to a decrease in expected long-term growth for North American economies.
As part of her analysis of global stocks, Ponder uses the domestic CAPM and the international CAPM to value stocks. She makes the following statements regarding the extension of the domestic capital asset pricing model (CAPM); Statement 1: To extend the domestic CAPM to international asset pricing using the extended CAPM, one must make two additional assumptions. First, that global investors have identical consumption baskets and second, that interest rate parity holds throughout the world.
Statement 2: The extended CAPM assumes that exchange rate changes are predictable so that there is no real exchange rate risk.
As the primary analyst for European securities, Owens analyzes the stocks in the countries of Catonia and Arbutia. Catonia and Arbutia arc not currently members of the European Union, but have a timetable for joining by the end of the decade.
To evaluate Caionian stocks, he uses the international CAPM. Owens mentions that a foreign currency risk premium must be added in this model, and that the risk premium depends on various parity conditions. He finds that the foreign exchange expectation relation and interest rate parity hold between Canada and Catonia. The interest rate in Canada is 2%, and the interest rate in Catonia is 5%.
One of the companies Owens follows in Arbutia is Diversified Metal Finishers. Diversified produces customized sheet metal applications for manufacturers throughout the world. The firm enjoys a competitive advantage because Arbutia is a commodity-rich country which allows Diversified to source its inputs locally. Owens has found that when the Arbutian currency changes by 10%, the value of the Diversified stock generally changes by 6%.
Ponder is also analyzing stocks in the nations of Bisharov and Dineva. She is estimating the expected return using the international CAPM (ICAPM) for Ivanova Metals, located in Dineva. The data for Canada, Dineva, and lvanova are shown in the following. The foreign currency is denoted as the local currency (LC).
Canadian risk-free rate 2.00%
Dineva risk-free rate 8.00%
World market risk premium 6.00%
Dineva index beta to world market index 1.40
Dineva local market risk premium 7.50%
Ivanova beta to local index 1.30
Foreign currency risk premium 3.00%
Dineva sensitivity of LC stock returns to LC 0.70
Owens examines Ponder's analysis and makes the following statements:
Statement 1: To protect the growing economy and prevent capital flight, the Bisharov government taxes foreign investors at higher rates and has placed limits on currency convertibility. In Dineva, the government has taken a more hands-off approach and does not regulate .foreign investment. If the world were to consist entirely of countries like Bisharov, then the ICAPM cannot be applied.
Statement 2; Furthermore, inflation is often a concern in emerging market countries. To measure an exchange rate between Canada and an emerging market currency that is adjusted for inflation, a real exchange rate should be calculated. Assuming no change in the real exchange rate, the change in an emerging market's asset values in domestic currency will just reflect the emerging market's asset returns in local currency and the difference between inflation rates in the domestic and foreign countries.
Which of the following would best explain the relationship between the Diversified stock value and the Arbutian currency?
A. The free markets theory.
B. The traditional model.
C. The money demand model.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
As explained in the answer for the previous question, Diversified stock will go up when the value of the Arbutian currency goes down; they are negatively correlated.
In the traditional model, a decline in the value of a country's currency increases national competitiveness in the long run. The traditional model predicts that depreciation in the value of the local currency will cause an increase in local currency firms stock values. This describes the Diversified stock price behavior.
In the money demand model, an increase in real economic activity leads to an increase in the demand for the domestic currency. The increased currency demand causes the value of the currency to appreciate.
Because stock prices are highly correlated with GDP growth, the money demand model is consistent with a positive correlation between the ' foreign exchange value of the local currency rates and local stock returns. So this would not describe the Diversified stock price behavior.
The free markets theory pertains to bond prices, so it is not applicable to the stock example here. (Study Session 18, LOS 66.n,o)
NEW QUESTION: 3
Which two statements about configuring NPV are true? (Choose two.)
A. NPV does not support NPIV-capable module servers (nested NPIV).
B. Only targets can be connected to an NPV device.
C. Only F, E, and SD ports are supported in NPV mode.
D. If DPVM is configured on the NPV core switch for an end device that is connected to the NPV device, then that end device must be configured to be in the same VSAN.
E. Distribute the NPV core switch links to different port groups for improved scalability.
Answer: D,E
NEW QUESTION: 4
Which description of SXP is true?
A. applies SGT along every hop in the network path
B. propagates SGT on a device upon which SGT inline tagging is supported
C. propagates SGT on a device upon which SGT inline tagging is unsupported
D. removes SGT from every hop in the network path
Answer: C
Explanation:
Explanation/Reference:
Reference: https://www.cisco.com/c/dam/en/us/solutions/collateral/borderless-networks/trustsec/C07-
730151-00_overview_of_trustSec_og.pdf
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