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NEW QUESTION: 1
The slope of the SML in an economy is 8.9%. The risk-free rate prevailing in the economy is 4.9%. A security has a correlation coefficient of 0.23 with the market. The market's standard deviation is 15% while that of the security is 19%. The expected return on the portfolio equals ________.
A. 14.19%
B. 13.66%
C. 7.49%
Answer: C
Explanation:
The Security Market Line (SML) is a plot of the expected returns on securities against their betas. CAPM implies that the slope of the SML equals the market risk premium and the intercept equals the risk-free rate. Hence, the data given in the problem imply that the market premium is 8.9%.
To calculate the expected return on the security using CAPM, we must first find its beta. The beta of the security equals the covariance between the security and the market divided by the market variance. Also, the covariance equals the product of the correlation coefficient and the individual standard deviations.
Hence, the covariance between the security and the market equals 0.23 * 0.15 * 0.19 = 0.0066. Therefore, the beta of the security equals 0.0066/(0.152) = 0.29. Therefore, the CAPM expected return on the security equals 4.9% + 0.29 * 8.9% = 7.49%.

NEW QUESTION: 2
During scope verification meetings, an end user often rejects the same type of deliverables although many of the requirements are met Alter conducting a root cause analysis the project manager learns that a specific quality control process was not performed due to lack of resources What should the project manager have done to avoid this?
A. Ensured that quality was managed
B. Requested more resources for quality control activities
C. Held quality control process meetings
D. Created quality checklists
Answer: D

NEW QUESTION: 3
A customer plans to update the firmware on a 4-Gb Fibre Channel interconnect module.
Which command should the customer run?
A. update device blade
B. update device icbay
C. update firmware blade
D. update firmware icbay
Answer: B
Explanation:
Reference: http://h20565.www2.hp.com/portal/site/hpsc/template.PAGE/public/psi/mostViewedDisplay?javax. portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cacheto ken&javax.portlet.prp_efb5c0793523e51970c8fa22b053ce01=wsrpnavigationalState%3DdocId%253Demr_na-c033666681%257CdocLocale%253Den_US&javax.portlet.tpst=efb5c0793523e51970c8fa22b053ce01&sp4ts .oid=3355739&ac.admitted=1390934384063.876444892.492883150 (see bullet#2)

NEW QUESTION: 4
You design a Business Intelligence (BI) solution by using SQL Server 2008. You create a SQL Server 2008
Reporting Services (SSRS) solution. Twenty users edit the content of the reports. The users belong to an
Active Directory group named Developers. At times, the reports are published with incomplete
information.
You need to design an approval process.
What should you do?
A. Deploy the reports to a Microsoft Office SharePoint Server 2007 environment.
B. Add the Developers group to the Content Manager role in SSRS.
C. Create a shared schedule for the reports. Set the snapshot execution option for all the reports by using the shared schedule.
D. Restrict the Developers group to the Browser role in SSRS.
Answer: A