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NEW QUESTION: 1
Refer to the exhibit.

Which message displays on the device when the campaign shown in the exhibit is triggered?
A. Test 2
B. Message Test 2
C. Hotel Special
D. Hotel Special: Test 2
Answer: C
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 2
A company that provisions job boards for a seasonal workforce is seeing an increase in traffic and usage The backend services run on a pair of Amazon EC2 instances behind an Application Load Balancer with Amazon DynamoDB as the datastore Application read and write traffic is slow during peak seasons Which option provides a scalable application architecture to handle peak seasons with the LEAST development effort?
A. Use Auto Scaling groups for the backend services Use DynamoDB auto scaling
B. Migrate the backend services to AWS Lambda Increase the read and write capacity of DynamoDB
C. Migrate the backend services to AWS Lambda Configure DynamoDB to use global tables
D. Use Auto Scaling groups for the backend services Use Amazon Simple Queue Service (Amazon SQS) and an AWS Lambda function to write to DynamoDB
Answer: A

NEW QUESTION: 3
Michael Thomas, CFA, is a fixed-income portfolio manager for TFC Investments. As part of his portfolio strategy for the Prosperity Fund, Thomas searches for companies that he expects to be upgraded or downgraded. Those potential upgrades he finds are added to the portfolio or if already in the portfolio are increased in proportion to other holdings before the upgrade takes place. Potential downgrades are sold from the portfolio before the downgrade takes place. Thomas is evaluating his portfolio's current holdings which include several bonds issued by companies in the oil and gas exploration and refining industries.
Year-end rating updates are expected to occur in a few days and Thomas is preparing to adjust his portfolio based on expected changes in credit ratings. He has assembled the following annual data on four of the oil and gas stocks in the portfolio:
Exhibit: 1

Thomas has been discussing his fixed-income strategies with a fellow portfolio manager, Shawna Reese.
Reese has indicated that while his initial approach is good, the overall credit analysis strategy could be improved and has made the following suggestions to Thomas for both the Prosperity Fund and other fixed- income funds he manages:
The current methodology does not consider special issues related to high-yield debt which makes up approximately 5% of the Prosperity Fund. Because most high-yield issuers have such a heavy dependence on short-term debt financing, analysis of the firm's debt structure will be extremely important to determine the priority of claims on the firm's assets as well as what source(s) of funds will be used to repay the principal. In addition, the corporate structure of high-yield issuers must be examined to determine the issuer's access to cash flows generated by its subsidiaries. A simple analysis of the parent's financial ratios will not reveal complicated corporate structures and indebtedness of subsidiaries that may restrict the issuer's ability to obtain the cash flows necessary to service its debt.
The current methodology as applied to the Municipal Opportunities Fund does not include the necessary specialized analysis for municipal securities. Among other items, tax-backed munis must be scrutinized as to the issuer's ability to maintain balanced budgets as well as to ensure that the issue has first priority of claims to revenue from public works projects. Revenue-backed munis require an assessment of the sufficiency of rate covenants to cover expenses and debt servicing of the underlying project as well as the ability for other government entities to access the revenues generated by the enterprise before they are passed on to revenue bondholders.
As part of his portfolio analysis, Thomas also examines yield volatility. Thomas makes the following statements:
Statement 1: Implied yield volatility estimates are based on the assumptions that the option pricing model is correct and that volatility is constant.
Statement 2: Yield volatility has been observed to follow patterns over time that can be modeled and used to forecast future volatility.
He concludes his analysis by comparing the swap rate curve to a government bond yield curve as a benchmark.
Which of the following statements regarding the choice between government bond yield curves and swap rate curves as benchmark yields is most likely correct?
A. Government bond yield curves are preferred because they are based on a more complete set of market yields.
B. The swap yield curve is preferred because swaps reflect similar levels of credit risk.
C. Government bond yield curves are preferred because the lack of a liquid secondary market can distort swap yields compared to government bond yields.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Market participants typically prefer to use the swap rate curve as a benchmark for the following reasons;
* The availability of swaps and the equilibrium pricing arc only driven by the interaction of supply and demand. It is not affected by technical market factors that can affect government bond yields.
* Swap curves across countries arc also more comparable than sovereign bond yield curves because they reflect similar levels of credit risk, while sovereign bond yield curves also reflect credit risk unique to each country's government bonds.
* The swap curve typically has yield quotes at 11 maturities between 2 and 30 years. The U.S. government bond yield curve typically only has on-che-run issues trading at four maturities between 2 and 30 years.
* . The swap market is not regulated by any government, which makes swap rates across different countries more comparable.
(Study Session 14, LOS 53.d)

NEW QUESTION: 4
Which of the following statements is most correct?
A. The CAPM approach is typically used to estimate a firm's flotation cost adjustment factor, and this factor is added to the DCF cost estimate.
B. These statements are all incorrect.
C. Under normal conditions, the CAPM (Capital Asset Pricing Model) approach to estimating a firm's cost of retained earnings gives a higher estimate than the DCF (Discounted Cash Flow) approach.
D. The risk premium used in the bond-yield-plus-risk-premium method is the same as the one used in the CAPM method.
E. In practice (as opposed to in theory), the DCF method and the CAPM method usually produce exactly the same estimate for k(s).
Answer: B
Explanation:
Explanation/Reference:
Explanation:
All are incorrect. Under the CAPM approach, it is at best difficult to obtain correct estimates of the inputs require to make it operational. The same could be said about the growth rate input under the DCF approach. The risk premium under the bond-yield-plus-risk premium approach is purely judgmental and results in a ballpark estimate.

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