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As the operations administrator for your company's Oracle Cloud Infrastructure (OCI), you have been entrusted the task of ensuring that data being accessed by the application is encrypted.
Your application portfolio Includes both Virtual Machine (VM) and Bare Metal (BM) database systems.
Which method should you use to achieve encryption of data in-transit?
A. Data is encrypted at rest using TDE and no additional encryption is needed
B. Key Store/Wallet service for on the fly encryption of data in transit
C. Configure backup encryption for RMAN backup sets before transferring data
D. Native Oracle Net Services encryption and integrity capabilities
Answer: D
In Oracle Database Cloud Service databases, data security is provided for data in transit and data at rest. Security of data in transit is achieved through network encryption. Security of data at rest is achieved through encryption of data stored in database data files and backups.
To secure connections to your Oracle Database Cloud Service databases, you can use native Oracle Net Services encryption and integrity capabilities.
Encryption of network data provides data privacy so that unauthorized parties are not able to view data as it passes over the network. In addition, integrity algorithms protect against data modification and illegitimate replay.

Mary Carr is 62 years old, in good health, and will retire in four years from her position as the CEO and chairman of the board of a large professional services firm, Appleton Professional Services, which is located in the midwestern United States. Carr has approached Tim Houlis, her financial planner, for help in preparing an investment policy statement and accompanying asset allocation. Jack Timmons is Houlis' assistant.
In a lunch meeting with Houlis and Timmons, Carr reveals that she is thinking of moving this year to be closer to Appleton's largest client. She is concerned about developing an investment plan now given that she will no longer have contact with Houlis if she does move. Houlis reassures her that this is not a problem. He states that a properly constructed investment policy statement can be readily implemented by her new financial advisor. Timmons states that the investment policy statement is a long-term document that should be changed only if the outlook for equities versus bonds and other assets changes.
Carr's parents were successful business people who owned a series of small firms. Their success, however, did not come without challenges. Twice they had to liquidate businesses in which they were the primary shareholders. As a child, Carr became accustomed to the uncertainties of the entrepreneurial world. When she graduated from college, her parents provided her with the funds to purchase Appleton Professional Services. Appleton was a small firm at that point, but Can-has grown it into one of the larger firms in its industry, even though the professional services industry is cyclical and is susceptible to economic recessions. Appleton went public eight years ago and Carr retained a majority shareholder position when it did. Over time she has sold some of the stock but still has a controlling position in the firm.
Despite the business difficulties Carr's parents experienced, they were able to amass a sizeable fortune in their later years. Including her inheritance and holdings in Appleton stock, Carr has a portfolio with a current value of $6,000,000, most of which is invested in Appleton and other domestic and international equities. Carr has instructed Houlis and Timmons to grow her portfolio over time, focusing on capital appreciation and achieving long-term return goals. She would like to leave her children a sizeable inheritance.
Carr is single with two children. Her oldest child, Mark, is 25 years old and financially independent. Her youngest son, John, is a junior in college at a prestigious liberal arts college in New England. The tuition payment for his last year of college of approximately $40,000 is due at the end of this year. She has no mortgage on her house. Carr is an avid bird watcher and gifts $50,000 a year to a local environmental group. She is concerned with the destruction of bird habitat, so she does not want to invest in highly- polluting industries or firms that are involved in real estate development.
When she retires, Carr will receive a lump-sum, after-tax distribution of approximately $500,000 from her firm. She will also begin collecting an annual pension payment equal to her current salary. The pension payment is indexed to inflation. She will be covered under Appleton's health insurance plan in retirement.
Carr spends $ 170,000 a year on vacations and living expenses, which is about equal to her current salary at Appleton.
Houlis estimates that Carr is taxed at an effective marginal rate of 30% on capital gains and income. Houlis estimates an inflation rate of 3% for the rest of Carr's life expectancy, which he projects at 20 years or more, given her good health.
With regard to generating adequate liquidity for Carr's portfolio, Timmons states that she need not invest entirely in income-generating assets. Instead, Carr can generate income from stock dividends, bond coupons, and the sale of assets. By being willing to generate income through the sale of assets, Carr would be able to broaden the types of securities available to her for investment. Timmons states that the problem with most assets that produce income (e.g., dividend paying stocks) is that their expected return is usually lower. He states that the advantage of his approach is that Carr could pursue higher return assets, such as small company stocks.
Is Carr's tax constraint best characterized as significant or insignificant, and is the return objective best characterized as average or above average?
Tax constraint ;Return objective
A. Significant ;Above average
B. Insignificant ;Above average
C. Insignificant ;Average
Answer: A
Her tax constraint is significant because she is taxed at a marginal rate of 30% on capital gains and income. Taxes are an important consideration for Houlis as he chooses assets for her portfolio.
She has stated specifically that she wishes to pursue long-term capital appreciation and leave her children a sizeable inheritance. Thus, her return objective is above average. (Study Session 18, LOS 68.c,f)


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