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NEW QUESTION: 1
Janice Palmer, CFA, is an international equity analyst at a large investment management firm catering to high net worth U.S. investors. She is assisted by Morgan Greene and Cathy Wong. Both Greene and Wong have prepared their preliminary security selections and are meeting along with Palmer today for detailed security analysis and valuation. They have narrowed their focus to a few closed-end country funds and some firms from Switzerland, Germany, the U.K. and the emerging markets.
The initial decision is to choose between closed-end country funds and direct investment in foreign stock markets. Wong is in favor of country funds because:
1. Country funds provide immediate diversification.
2. Buying country funds is a better choice than direct investment for most emerging markets.
However, Wong has observed a premium to NAV that is prevalent in closed-end country funds. Wong is curious as to how the observed premiums would affect investments in such instruments.
In contrast to Wong, Greene is more inclined towards individual stocks and has started looking into their financial statements. One firm Greene is analyzing is a German conglomerate. Kaiser Corp. Kaiser has a history of growing by acquiring high-growth firms in niche markets. Exhibit 1 provides key financial information from Greene's analysis of Kaiser Corp.
Exhibit 1: Financial information-Kaiser Corp.

While going through their sample of emerging market stocks, Wong observed that these markets in general have high inflation and that sales for the stocks were extremely seasonal. Wong compensated by adjusting reported sales growth in the emerging market firms by deflating the sales using annual inflation adjustments. Wong also made upward adjustments to reported depreciation figures.
Wong suggested to her colleagues that they add a country risk premium to the discount rate they were using to evaluate emerging market stocks. She further suggested that they estimate country risk premiums by calculating the spread between the yield of U.S. government bonds and that of similar maturity local bonds.
Subsequently they started working on the financial projections for Emerjico, Inc., an emerging market stock. Their assumptions are given in Exhibit 2.
Exhibit 2: Key Assumptions-Emerjico

Based on the spread between local bonds and U.S. Treasuries, is Wong's suggestion of adding a country risk premium to the discount rate being used appropriate or not? Adding a country risk premium is:
A. not appropriate because returns on local debt issues are highly correlated with returns on corporate investments.
B. appropriate if the local bonds are dollar denominated.
C. not appropriate because country risks are largely diversifiable risks.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Country risk can be largely diversified away. Hence, the addition of country risk premiums to discount rates is not the preferred way for valuing emerging market stocks. The scenario discounted cash How method is recommended as the prime valuation approach. A common method for deriving a country risk premium does use the spread between U.S. Treasuries and local bonds that are dollar denominated, but this approach is realistic ONLY if the returns of local debt and equity instruments are highly correlated. Such a premium is difficult to apply to individual securities because different industries are affected by country risks in different ways. (Study Session II, LOS 39.d)

NEW QUESTION: 2
Which end goal does Cisco have about interoperability?
A. for everyone to stop talking about interoperability as if it is an option
B. for Microsoft to comply with interoperable standards
C. for everyone to comply with the Cisco standard
D. for everyone to use SCCP
Answer: A

NEW QUESTION: 3
Sie müssen App2 implementieren, um die Anwendungsanforderungen zu erfüllen.
Was sollten Sie in die Implementierung einbeziehen? Wählen Sie zum Beantworten die entsprechenden Optionen im Antwortbereich aus.
HINWEIS: Jede richtige Auswahl ist einen Punkt wert.

Answer:
Explanation:

Explanation:
* A newly developed API must be implemented as an Azure function named App2. App2 will use a blob storage trigger. App2 must process new blobs immediately.
* This requires "Always On".
* The cost of App1 and App2 must be minimized
* The Standard pricing tier is the cheapest tier that supports Always On.


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