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NEW QUESTION: 1
In examining the beta for its machine tools division, the management of Clay Industries has regressed the division's ROA against that of the S&P 500. Which of the following best characterize this method of calculating project beta?
A. Pure Play Method
B. Monte Carlo Regression
C. Accounting Beta Method
D. None of these answers
E. Project Beta Method
F. Regression of the Poisson Distribution
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In this example, the management of Clay Industries has determined the Beta coefficient for its machine tools division using the Accounting Beta Method. In using the Accounting Beta Method, the monthly (or quarterly) ROE or ROA of a specific division/project is compared to that of a large group of firms. This
"large group of firms" is frequently characterized by a major market index, such as the S&P 500 or the Wilshire 5000. The Accounting Beta Method is used more frequently than the Pure Play Method, primarily because it is often difficult to find "pure-play" firms.

NEW QUESTION: 2
You are developing a web page that includes the following HTML.
<span id = "myTextSpan" class = "redText"> Hello There! </span>
The font color of text inside the span must be red.
You need to develop the web page to meet the requirement.
Which two CSS segments will achieve the goal? (Each correct answer presents a complete solution. Choose two.)

A. Option D
B. Option B
C. Option C
D. Option A
Answer: C,D
Explanation:
Explanation
You can refer to class, by .redText, or the span, by span#myTextSpan.

NEW QUESTION: 3
A company experiences both variable usage rates and variable lead times for its inventory items. The probability distributions for both usage and lead times are known. A technique the company could use for determining the optimal safety stock levels for an inventory item is:
A. Decision tree analysis.
B. Linear programming.
C. Queuing theory.
D. Monte Carlo simulation.
Answer: D
Explanation:
Simulation is a technique for experimenting with mathematical models using a computer. Monte Carlo simulation is a technique to generate the individual values for a random variable. A random number generator is used to produce numbers with a uniform probability distribution. The second step of the Monte Carlo process then transforms the random numbers into values consistent with the desired distribution. The performance of a model under conditions of uncertainty may be investigated by randomly selecting values for each of the variables in the model based on the probability distribution of each variable and then calculating the value of the solution. Advantages of Monte Carlo simulation are that time can be compressed, alternative policies can be considered, and complex systems can be analyzed.