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NEW QUESTION: 1
Which of the following statements concerning diversification is incorrect?
A. The primary factor affecting the diversification of a portfolio is each security's covariance with the other securities in the portfolio.
B. Diversification can reduce portfolio risk only if the security return correlation is less than 1.0.
C. Proper diversification can eliminate market risk.
Answer: C
Explanation:
Proper diversification can eliminate non-market or unsystematic risk, not market risk.
NEW QUESTION: 2
A particular process has two independent sources of variation. The standard deviation of the first source is 3 units and the standard deviation of the second source is 4 units. The standard deviation of the processes is:
A. 0
B. 1
C. 2
D. 3
Answer: B
Explanation:
You have to take the Variance to calculate the SD. Variance = (S.D) * (S.D) S.D = Sqrt of Variance Variance of the first source = 3 * 3 = 9 Variance of the second source = 4 * 4 = 16 Total Variance = 25
S.D = Sqrt of variance = 5
NEW QUESTION: 3
You need to identify the storage requirements for Contoso.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
Explanation:
Box 1: Yes
Contoso is moving the existing product blueprint files to Azure Blob storage.
Use unmanaged standard storage for the hard disks of the virtual machines. We use Page Blobs for these.
Box 2: No
NEW QUESTION: 4
Application controls are designed to prevent, detect, and correct errors and irregularities as transactions flow through the application. Application controls are classified into all of the following categories EXCEPT:
A. internal controls
B. Processing controls
C. Input controls
D. Output controls
Answer: A
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