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NEW QUESTION: 1
Amie Lear, CFA, is a quantitative analyst employed by a brokerage firm. She has been assigned by her supervisor to cover a number of different equity and debt investments. One of the investments is Taylor, Inc. (Taylor), a manufacturer of a wide range of children's toys. Based on her extensive analysis, she determines that her expected return on the stock, given Taylor's risks, is 10%. In applying the capital asset pricing model (CAPM), the result is a 12% rate of return.
For her analysis of the returns of Devon, Inc. (Devon), a manufacturer of high-end sports apparel, Lear intends to use the Fama-French model (FFM). Devon is a small-cap growth stock that has traded at a low market-to-book value in recent years. Lear's analysis has provided a wealth of quantitative information to consider. The return on a value-weighted market index minus the risk-free rate is 5.5%, the small-cap return premium is 3.1%, the value return premium is 2.2%, and the liquidity premium is 3.3%. The risk-free rate is 3.4%. The market, size, relative value, and liquidity betas for Devon are 0.7, -0.3, 1.4, and 1.2, respectively. In estimating the appropriate equity risk premium, Lear has chosen to use the Gordon growth model.
Lear's assistant, Doug Saunders, presents her with a report on macroeconomic multifactor models that includes the following two statements:
Statement 1: Business cycle risk represents the unexpected change in the difference between the return of risky corporate bonds and government bonds.
Statement 2: Confidence risk represents the unexpected change in the level of real business activity.
Lear is also attempting to determine the most appropriate method for determining the required return for Densmore, Inc. (Densmore), a closely held company that is considering a debt issue within the next year.
The company has not previously issued debt securities to the public, relying instead on bank financing.
She realizes that there are a number of models to consider, including the CAPM, multifactor models, and build-up models.
Which of the following statements regarding the models used to estimate the required return is most accurate?
A. A strength of the capital asset pricing model (CAPM) is that it usually has high explanatory power.
B. A strength of multifactor models is their relative simplicity and ease of calculation.
C. A weakness of build-up models is that they typically use historical values as estimates that may not be relevant to current market conditions.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
A weakness (not strength) of the CAPM is its low explanatory power in some cases. Multifactor models usually have higher explanatory power than the CAPM since they use more than one factor, whereas CAPM uses only one factor.
A weakness (not strength) of multifactor models is that they are typically more complex to use. (Study Session 10, LOS 35.f)

NEW QUESTION: 2
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this question, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You have an Azure IoT solution that includes an Azure IoT hub, a Device Provisioning Service instance, and 1,000 connected IoT devices.
All the IoT devices are provisioned automatically by using one enrollment group. You need to temporarily disable the IoT devices from the connecting to the IoT hub. Solution: You delete the enrollment group from the Device Provisioning Service. Does the solution meet the goal?
A. No
B. Yes
Answer: A
Explanation:
Instead, from the Device Provisioning Service, you disable the enrollment group, and you disable device entries in the identity registry of the IoT hub to which the IoT devices are provisioned.
Reference:
https://docs.microsoft.com/bs-latn-ba/azure/iot-dps/how-to-unprovision-devices

NEW QUESTION: 3
Which type of field cannot have universal requiredness?
A. Number
B. Text
C. Email
D. Lookup
Answer: D

NEW QUESTION: 4
A Customer wants to backup their Vmware disks, but does not want to use traditional ISV programs to perform this. Which software solution should you recommend?
A. HPE StoreOnce Recovery Manager.
B. HPE StoreVirtual VSA
C. HPE 3PAR File Persona software
D. HPE 3PAR StoreServ
Answer: A