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NEW QUESTION: 1
Ron Natin heads a committee that oversees the USA Insurance portfolio with total assets of $25 billion.
The portfolio has 15% of total assets allocated to foreign investments, which include both international stocks and bonds. The committee has adopted a position that the domestic markets are efficient and thus, has indexed the domestic portion of the portfolio. Each unique asset class in the domestic portfolio has been benchmarked individually. The committee believes that foreign markets are less efficient and utilizes active managers for this asset class. The foreign allocation is 60% stocks and 40% bonds. The committee has divided the foreign stock portfolio equally among three different managers. The committee closely monitors the risk level of these managers by reviewing their portfolio betas (current betas: 1.1, 0.95, and
1.3).
As part of his committee responsibilities, Natin is required to review all reports and speeches prepared by other members of the committee before they are presented to the public. One of the committee members, Mclanie Henley, has submitted a speech on the subject of international diversification and the international capital asset pricing model (ICAPM) that she will give to a group of MBA students at a local university.
Following are excerpts from her proposed speech:
International investment and diversification is an important concern in money management and, of the many relevant issues to discuss, there are two key insights that I will Take time to explain. First of all, it is essential to realize that the currency exposure of a foreign stock investment is the sensitivity of the stock price to a change in the value of the local currency and that a positive correlation between stock prices and the local currency would mean that the local stock price increases as a result of a depreciation of the local currency. Second, as future asset managers you should realize that improvements in a foreign nation's economic activity that result in an increase in real interest rates will decrease bond prices, but will be offset by an appreciation of the home currency.
The ICAPM is similar to the domestic CAPM in several ways. For example, both models assume that investors are risk-averse, preferring lower levels of risk and greater expected returns, that all investors have the same expectations for the risk and return of every asset, and that all investors should hold some combination of a risk-free asset and the market portfolio.
The IGAPM is a useful construct to determine asset prices in a global context. Strategies that depend explicitly on asset prices derived from the ICAPM can rely on these asset prices even if currency hedging is inhibited in certain markets by legal restrictions on such activities.
The committee monitors the investments of its equity managers by modeling the expected returns of each individual stock. The model used is (he ICAPM. One such stock, a Swiss medical equipment manufacturer, has a world beta of 1.2. The world market risk premium is 4%, and the Swiss franc offers a risk premium of
0.5%. The currency exposure is 0.5, and the applicable risk-free rate is 5%. The expected return on this stock according to the ICAPM model is closest to:
A. 10.05%.
B. 12.00%.
C. 9.80%.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 2
Question is missing
Answer:
Explanation:
debug capwap events, errors enable
Explanation:
http://www.cisco.com/c/en/us/support/docs/wireless/5500-series-wireless-controllers/119286-lap- notjoin-wlc-tshoot.html#backinfo
NEW QUESTION: 3
Salesforce releases an enhanced feed publisher component in the latest release of the Napili template.
Universal Containers org is now on the latest version, but the collaboration component is NOT available in the Napili template. What should the Salesforce Admin do to resolve this issue?
A. Refresh the Salesforce component list In Community Builder
B. Un publish and republish the Napili template
C. Upgrade the template to like latest version
D. Enable Chatter for the one
Answer: D
NEW QUESTION: 4
A company has adopted a security policy that requires all customer data to be encrypted at rest. Currently, customer data is stored on a central Amazon EFS file system and accessed by a number of different applications from Amazon EC2 instances.
How can the SysOps Administrator ensure that all customer data stored on the EFS file system meets the new requirement?
A. Update the EFS file system settings to enable server-side encryption using AES-256.
B. Use AWS CloudHSM to encrypt the files directly before storing them in the EFS file system.
C. Modify the EFS file system mount options to enable Transport Layer Security (TLS) on each of the EC2 instances.
D. Create a new encrypted EFS file system and copy the data from the unencrypted EFS file system to the new encrypted EFS file system.
Answer: D
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