COBIT-2019 Practice Questions

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NEW QUESTION: 1
Which of the following statements about portfolio theory is FALSE?
A. Assuming that the correlation coefficient is less than one, the risk of the portfolio will always be less than the simple weighted average of individual stock risks.
B. Risk aversion results in an upward sloping security market line (SML).
C. When the return on an asset added to a portfolio has a correlation coefficient of less than one with the other portfolio asset returns but has the same risk, adding the asset will not decrease the overall portfolio standard deviation.
D. For a two-stock portfolio, the lowest risk occurs when the correlation coefficient is close to negative one.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
This statement misstates the principle of diversification and should read, "When the return on an asset added to a portfolio has a correlation coefficient of less than one with the other portfolio asset returns but has the same risk, adding the asset will decrease the overall portfolio standard deviation." Anytime the correlation coefficient is less than one, there are benefits from diversification. The other choices are true.

NEW QUESTION: 2
A company orders parts from a vendor. The vendor frequently ships more units than the company orders.
An approving manager must receive notification when the quantity of units received is more than 10 percent above the number of units ordered.
You have an existing notification workflow.
You need to ensure that the notification is generated.
How should you configure the system? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 3
The same communication plan can be used across projects.
A. FALSE
B. TRUE
Answer: A