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NEW QUESTION: 1
Which of the following statements about portfolio management is TRUE?
A. The security market line (SML) measures systematic and unsystematic risk versus expected return; the CML measures total risk.
B. The expected return on a 0 beta security is the expected market return.
C. As an investor diversifies away the unsystematic portion of risk, the correlation between his portfolio return and that of the market approaches negative one.
D. Combining the capital market line (CML) (risk-free rate and efficient frontier) with an investor's indifference curve map separates out the decision to invest from the decision of what to invest in.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Combining the CML (risk-free rate and efficient frontier) with an investor's indifference curve map separates out the decision to invest from what to invest in and is called the separation theorem. The investment selection process is thus simplified from stock picking to efficient portfolio construction through diversification.
The other statements are false. As an investor diversifies away the unsystematic portion of risk, the correlation between his portfolio return and that of the market approaches positive one. (Remember that the market portfolio has no unsystematic risk). The SML measures systematic risk, or beta risk. The expected return on a 0 beta security is the risk free rate (the market premium term has a value of 0).

NEW QUESTION: 2
All are examples of corticosteroids inhalers used in asthma, EXCEPT:
A. Beclometasone
B. Fluticasone
C. Budesonide
D. Sodium cromoglycate
E. Flunisolide
Answer: D

NEW QUESTION: 3
When configuring LLQ (strict priority queue) on a traffic class using the Cisco IOS XR priority command on a Cisco ASR9K router, which additional QoS command is required for this traffic class?
A. shape
B. bandwidth
C. random-detect
D. police
Answer: D
Explanation:
Explanation
The Low Latency Queueing feature brings strict priority queueing to Class-Based Weighted Fair Queueing (CBWFQ).

NEW QUESTION: 4
The provider contract that Dr. Timothy Meyer, a pediatrician, has with the Cardigan health plan states that Cardigan will compensate him under a capitation arrangement. However, the contract also includes a typical low enrollment guarantee provision. Statements that can correctly be made about this arrangement include that the low enrollment guarantee provision most likely:
A. Causes Dr. Meyer's capitation contract with Cardigan to transfer more risk to him than the contract otherwise would transfer
B. B only
C. A only
D. Specifies that Cardigan will pay Dr. Meyer under an arrangement other than capitation until a specified number of children covered by the plan use him as their PCP
E. Both A and B
F. Neither A nor B
Answer: E