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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 overvalued and Z is correctly valued.
C. Y is undervalued 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 are two possible storage multipatching policies that you can set on an ESX Server 3.X? Select two.
A. Dynamic Load Balancing
B. Open Shortest Path First (OSPF)
C. Most Recently used (MRU)
D. Persistent Binding Do- Fixed
Answer: C
Explanation:
Per ESX SAN Configuration Guide. page 94 SAN Configuration Guide

NEW QUESTION: 3
Given:

and the code fragment:

What is the result?
A. 1500.0
B. 0.0
C. 2000.0
D. A compilation error occurs.
Answer: A