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NEW QUESTION: 1
Both portfolio Y and Z are well-diversified. The risk-free rate is 6%, the expected return on the market is 15%, and the portfolios have the following characteristics:
Portfolio | Expected Return | Beta Y | 17% | 1.20 Z | 14% | 1.00
Which of the following best characterizes the valuations of portfolio Y and Z?
A. Y is undervalued and Z is overvalued.
B. Y is undervalued and Z is correctly valued.
C. Y is overvalued and Z is correctly valued.
Answer: A
Explanation:
Because both portfolios are completely diversified, their returns should only reflect systematic risk of the portfolios. Thus, their betas are informative but their deviations are relevant. The required return for each portfolio can be calculated using the CAPM and compared with the associated market-implied expected return.
Y is undervalued. Its CAPM return is 6 + 1.2 x (15 - 6) = 16.8%. yet it has an expected return of 17%. Thus, the portfolio offers more return than is required given its level of risk and would therefore be attractive to investors. In contrast, Z is overvalued. Its CAPM return is 6 + 1.0 x (15 - 6) = 15%. However, it has an expected return of 14%. Thus, the portfolio offers less return than is required given its level of risk and would therefore be unattractive to investors.

NEW QUESTION: 2
What is "SAP ERP"?
Please choose the correct answer.
Response:
A. SAP ERP is a system that contains components for purchasing, sales, materials management, production, and so on.
B. SAP ERP is a technology platform that can be used as a basis for implementing customer-specific enhancements.
C. SAP ERP is an application that a company can use to manage its business processes efficiently.
D. SAP ERP is a planning system in which enhanced planning processes can be represented.
Answer: C

NEW QUESTION: 3
次のサービスのうち、オペレーティングシステムの構成、セキュリティパッチ、およびネットワークを維持する責任があるのはどれですか。
A. AWS Fargate
B. Amazon ElastiCache
C. Amazon RDS
D. Amazon EC2
Answer: D
Explanation:
The customer is responsible for managing, support, patching and control of the guest operating system and AWS services provided like EC2.