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NEW QUESTION: 1
An organization would like to bid on a project, but they don't have enough employees available to complete the work. The organization approaches a competitor with the opportunity to partner on the project to win the work. What type of risk response is used in this instance?
A. Sharing
B. Mitigation
C. Transference
D. Enhancing
Answer: A
NEW QUESTION: 2
You are administering a database that supports multiple applications, which make dedicated connections to the database instance by using different services.
You execute the command to enable tracing of the ORCL1service:
Which two statements are true? (Choose two.)
A. A single trace file is generated for all sessions mapped to the ORCL1service.
B. SQL trace is enabled for all modules and actions for sessions mapped to the ORCL1service.
C. An SQL trace file is generated for each of the modules using the ORCL1service.
D. SQL trace is not enabled for the service because a module name is not specified.
E. An SQL trace file is generated for each session that maps to the ORCL1service.
Answer: A,E
NEW QUESTION: 3
Tamara Ogle, CFA, and Isaac Segovia, CAIA, are portfolio managers for Luca's Investment Management (Luca's). Ogle and Segovia both manage large institutional investment portfolios for Luca's and are researching portfolio optimization strategies.
Ogle and Segovia begin by researching the merits of active versus passive portfolio management. Ogle advocates a passive approach, pointing out that on a risk-adjusted basis, most managers cannot beat a passive index strategy. Segovia points out that there will always be a need for active portfolio managers because as prices deviate from fair value, active managers will bring prices back into equilibrium. They determine that Treynor-Black models permit active management within the context of normally efficient markets.
Ogle decides to implement Treynor-Black models in her practice and starts the implementation process. In conversations with her largest client's risk manager, Jim King, FRM, she is asked about separation theorem in relation to active portfolio management. She responds that separation theorem more properly relates to asset prices deviating from and gravitating toward their theoretical fair price. King next asks Ogle about the differences between the Sharpe ratio and the information ratio and the difference between the security market line (SML) and the capital market line (CML).
After reallocating her client portfolios based on using the Treynor-Black model, Ogle discusses the results with Segovia. Ogle states that she is satisfied with the current methodology, but given her preference for passive management, she is still concerned about relying on analyst's forecasts. Segovia tells Ogle that he will research methods for modifying the Treynor-Black model to account for analyst forecasts.
When using the Treynor-Black model, the actively managed portfolio's security weights computed by Ogle are calculated as the ratio of each security's:
A. excess return to its unsystematic risk divided by the sum of these ratios for every security in the active portfolio.
B. alpha to its systematic risk divided by the sum of these ratios for every security in the active portfolio.
C. alpha to its nonsystematic risk divided by the sum of these ratios for every security in the active portfolio.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In the Treynor-Black model, rhe weightings for securities in the actively managed portfolio are computed as:
where:
n = number of assets in actively managed portfolio
If the markets were efficient, there would be no benefit from active security analysis. However, as markets become inefficient, according to the Treynor-Black model, the value of active security selection increases.
(Study Session 18, LOS 67.b)
NEW QUESTION: 4
You have the following code.
You need to ensure that the classify string contains the next "positive" if the input number is more than zero and "negative" if the input number is less than or equal to zero.
How should you complete the code? To answer, drag the appropriate code elements to the correct targets in the answer area. Each code element may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
Answer:
Explanation:
Explanation
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