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NEW QUESTION: 1
Penny Linn, CFA, predicts that both Stock X and Y will return 20% next year. The Treasury bill rate is 5% and the market risk premium is 8%. The beta for Stock X is 1.5 and for Stock Y is 2. The standard deviation for Stock X is 20% and for Stock Y is 30%. Determine if Linn's predictions lie above or below the security market line.
A. Only Stock X lies below the SML.
B. Only Stock Y lies below the SML.
C. Both Stock X and Stock Y lie below the SML.
Answer: B

NEW QUESTION: 2
ユーザーが実際に誰であるかを確認する責任があるセキュリティメカニズムはどれですか？
A. 随意アクセス制御
B. 役割と特権
C. 強制アクセス制御
D. 認証
Answer: D

NEW QUESTION: 3
If the returns of an asset display a strong tendency for mean reversion, what is the relationship between annualized volatility calculated based on daily versus weekly volatilities (using the square root of time rule)?
A. Either daily or weekly volatility will be greater, depending upon how the week went
B. Weekly volatility will be greater than daily volatility
C. Daily and weekly volatilities will be the same
D. Daily volatility will be greater than weekly volatility
Answer: D
Explanation:
Explanation
If returns display mean reversion, then clearly daily volatilities will be greater than weekly volatility, both annualized using the square root of time rule. Mean reversion would imply that the deviation from the mean will be lower over a longer time period than a shorter time period, and therefore annualized volatility based on daily volatility will be greater.