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Exam Code: C-THR92-2105

Exam Name: SAP Certified Application Associate - SAP SuccessFactors People Analytics Embedded Edition 3H/2021

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
Which two statements best describe the Fresnel zone related to an outdoor RF point-to-point link?
(Choose two.)
A. multiple elliptical areas surrounding an RF line of sight
B. single elliptical area surrounding an RF line of sight
C. extends three-dimensionally
D. extends horizontally
E. extends vertically
Answer: A,C

NEW QUESTION: 2
A financial institution is considering shedding a business unit to reduce its economic capital requirements.
Which of the following is an appropriate measure of the resulting reduction in capital requirements?
A. Incremental capital for the business unit in consideration
B. Percentage of total gross income contributed by the business unit in question
C. Proportionate capital for the business unit in consideration
D. Marginal capital for the business unit in consideration
Answer: A
Explanation:
Explanation
Incremental capital (or incremental VaR, depending upon the context), is a measure of the change in the capital (or VaR) requirements if a certain change is made to a portfolio. It uses the 'before' and 'after' approach, ie find out what the capital requirement or VaR will be without the change, and what it will be after the change. The difference is the incremental capital or incremental VaR. It helps measure the change in risk as a result of a particular action, eg a change in a position.
Marginal capital or VaR on the other hand is a method to break down the capital requirement or the VaR so that it can be assigned to individual positions within the portfolio. The total of marginal capital or marginal VaR for all the positions in a portfolio adds up to the total capital requirements or total VaR. Note that marginal VaR is also called component VaR.
Therefore incremental capital is the correct answer to this question. The other choices are incorrect. In the exam, the question may be phrased differently, so try to keep in mind the different between incremental and marginal capital, which can be a bit confusing given what these terms mean in plain English.

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