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NEW QUESTION: 1
Cavanaugh Inc. has a beta of 1.2. Next year you project the market will earn 12% and the risk free rate will be 5%. If you buy Cavanaugh you project your return will be 13%. Thus you think:
A. Cavanaugh's performance will just matched the market return on a risk-adjusted basis.
B. Cavanaugh will outperform the market on a risk-adjusted basis.
C. Cavanaugh's performance has nothing to do with the market return.
D. Cavanaugh will underperformed the market on a risk-adjusted basis.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Rs = Rf + B(Rm - Rf)Rs = .05 + 1.2(.12-.05)Rs = .134 or 13.4%You project Cavanaugh will out perform the market.
NEW QUESTION: 2
A global financial institution has decided not to take any further action on a denial of service (DoS) risk found by the risk assessment team. The MOST likely reason they made this decision is that:
A. there are sufficient safeguards in place to prevent this risk from happening.
B. The likelihood of the risk occurring is unknown.
C. the needed countermeasure is too complicated to deploy.
D. the cost of countermeasure outweighs the value of the asset and potential loss.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
An organization may decide to live with specific risks because it would cost more to protect themselves than the value of the potential loss. The safeguards need to match the risk level. While countermeasures could be too complicated to deploy, this is not the most compelling reason. It is unlikely that a global financial institution would not be exposed to such attacks and the frequency could not be predicted.
NEW QUESTION: 3
If you build an expression manually, as opposed to using a function (e.g., specify (V1+V2)/2 instead of MEAN (V1 , V2)), which statement is true?
A. If any of the variables used in the expression has a missing value, the result for that case is a system-missing value.
B. If any of the variables used in the expression has a missing value, you will get a notification pointing this out before you proceed.
C. If any of the variables used in the expression has a missing value, it will be ignored and the expression will proceed to evaluate with variables that have valid values.
D. It will always return a valid value for each case, regardless of whether one or more of the source variable values are missing.
Answer: A
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