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NEW QUESTION: 1
Ryan Hendricks serves as a security analyst for Investment Management, Inc. (IMI), which employs the Treynor-Black model to evaluate securities and to make portfolio recommendations. IMI uses the capital asset pricing model (CAPM) to determine the degree to which securities may be mispriced relative to IMFs forecasts.
Hendricks evaluates the common shares of Computer Software Associates (CSA), a small company specializing in a unique computer software market niche. Hendricks obtains the following market model results for CSA, using monthly returns for the past 60 months:

Hendricks uses the adjusted beta method to derive his forecasts for companies' future betas. In deriving his forecast for any company beta, Hendricks uses the following first-order autoregressive formula:
forecast beta = 0.33 + 0.67 x (historical beta) (2)
Hendricks derives required returns for individual securities using the CAPM after making appropriate adjustments using his adjusted beta formula in equation (2).
IMI provides Hendricks with the following capital market forecasts to use as inputs for the CAPM.

IMI asks Hendricks to make decisions to take long and short positions in individual securities for IMl's actively managed portfolio, IMI-Active. Specifically, Hendricks is asked to examine CSA and Millennium Drilling (MD), an oil and gas drilling company specializing in deep sea drilling. After a thorough examination of the prospects for each company, Hendricks derives the following alpha forecasts for CSA and MD.
Hendricks forecasts that the unsystematic variance (the variance of the market model regression error) for MD will be more than double that of CSA.
After determining the appropriate allocations across securities within the IMI-Active portfolio, Hendricks derives the portfolio predictions shown in Exhibit 3.
IMI forecasts that the total standard deviation for the S&P500 returns will equal 20%. After examining the historical forecasting abilities of Hendricks, IMI determines that Hendricks has demonstrated perfect forecasting ability in regards to CSA stock, but imperfect forecasting abilities in regards to MD stock. IMI finds that the correlation between the realized alphas for MD and the forecast MD alphas provided by Hendricks equals 0.50.
Referring to the Treynor-Black model, Hendricks makes the following statements:
Statement 1: All else equal, the Treynor-Black model increases the weight to the active portfolio as its unsystematic risk increases.
Statement 2: The Treynor-Black model is based on the premise that only a limited number of stocks should be included in the actively managed portfolio.
Hendricks' forecasts for the CSA beta and future return are closest to:
A. 1.33 beta and 16% return.
B. 1.17 beta and 12% return.
C. 1.50 beta and 20% return.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
We are told that IMI uses the CAPM to determine the degree to which securities are mispriced. The equation for the CAPM (using the S&P500 market index and treasury bill to proxy for the market index and risk-free asset) is:

According to Exhibit 2, Hendricks forecasts that the CSA alpha will equal 4%. The alpha equals the difference between Hendricks* forecast return and the required return:
Alpha for CSA = forecast return - CAPM required return
or
Forecast return = alpha + CAPM required return = 0.04 + 0.16 = 0.20 = 20% (Study Session 10, LOS 33.e and Study Session 18, LOS 64.e,h)

NEW QUESTION: 2
When designing an HP Virtual connect FlexFabric network, how many downlink connections can be configured per module pair to an HP ProLiant BL460c. Gen8 server with an HP FlexFabric 2port FlexLOM?
A. 0
B. 1
C. 2
D. 3
Answer: A

NEW QUESTION: 3
AC電源障害が検出されたときにストレージアレイが実行する正しい一連の手順は何ですか？

Answer:
Explanation:

Explanation
Storage processors
Power
BIOS
SP Cache
Array
The Battery Backup Unit (BBU) provides power to the Storage Processor in the event that cabinet power is
lost. The BBU is designed to power the SP long enough for the system to store SP cache content to the M.2
SSD device before powering down. The BBU includes sensors which communicate its charge and health
status to the SP. In the event the BBU is discharged the SP will disable cache until the BBU has recharged. In
the event the BBU has faulted or cannot sustain enough charge, an alert will be generated.
References:
https://www.emc.com/collateral/white-papers/h15084-dell-emc-unity-introduction-to-the-platform.pdf

NEW QUESTION: 4
Which of the following describes how a route is handled when is received at the PE from the local CE?
A. It will be placed into the customer VRF and require an export policy to be placed into the BGP table if a protocol other than BGP is used as the PE-CE protocol
B. It will be placed into the customer VRF and then be propagated to the BGP table only if BGP is used as the PE-CE protocol
C. It will be placed into the customer VRF and require an export policy to be propagated to the BGP table
D. It will be placed into the customer VRF and require an export policy to be propagated to the BGP table if RIP is used as the PE-CE protocol
E. It will be placed into the customer VRF and automatically propagated into the BGP table
Answer: E

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