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NEW QUESTION: 1
Assume the following information about a stock market series:
Observed beginning value: 1677
Anticipated ending value: 1890
Expected dividends during the period: $16.36
Required rate of return: 19.50%
Using this information, what is the expected rate of return for this index? (Assume a one-year holding period.)
A. 10.40%
B. 12.14%
C. 11.73%
D. None of these answers is correct.
E. 14.79%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The anticipated rate of return for this stock market series is found as 13.68%. Thus, none of these answers is correct.
To calculate the expected rate of return for a stock market series, the following information must be known:
The beginning value for the series, the anticipated ending value for the series, and the amount of any dividends and/or distributions during the period.
Once this information has been determined, the expected return on a stock market index can be found by employing the following equation: {E(R) = [(EV - BV + Div) / BV]}. Where E(R) = the expected return on the stock market series, EV = the anticipated ending value for the series, BV = the observed beginning value for the series, and Div = the amount of any dividends paid during the period.
In this example, all of the necessary information has been provided and the calculation of the expected return on this stock market series is found as follows: {E(R) = [$1890 - $1677 + $16.36] / 1677} = 13.68%.
This is significantly less than the required rate of return. Assuming that both the ending value and dividend figure is accurate, investment in this stock market series is likely not warranted.
NEW QUESTION: 2
A financial trading organization plans to monitor the network latency for multicast data feeds on a hop-by-hop basis. Which technology should be added to their design to support this requirement?
A. Precision Time Protocol
B. SPAN
C. NBAR
D. IPFIX
Answer: A
NEW QUESTION: 3
What should occur if the auth ftp command was used in a proxy configured environment?
A. ignoreACLs for FTP over HTTP
B. authenticate all FTP requests
C. allow FTP requests and execute the remaining FTP ACLs
D. allow FTP requests and bypass the remaining FTPACLs enable/disable FTP over HTTPS
Answer: B
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