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NEW QUESTION: 1
Samuel Edson, CFA, portfolio manager for Driver Associates, employs a multifactor model to evaluate individual stocks and portfolios. Edson examines several possible risk factors and finds two that are priced in the marketplace. These two factors are investor sentiment (IS) risk and business cycle (BC) risk. Edson manages three equity portfolios (A, Bt and Q and derives the following relationships for each portfolio, as well as for the S&P 500 stock market index:

Portfolios A and B are well-diversified, while C is a less than fully diversified, value-oriented portfolio. FJS is the surprise in investor sentiment, and FBC is the surprise in the business cycle. Surprises in the risk factors are defined as the difference between the actual value and the predicted value.
Exhibit 1 provides data for the actual and predicted values for the investor sentiment and business cycle risk factors.

Driver Associates uses a two-factor Arbitrage Pricing Model to develop equilibrium expected returns for individual stocks and portfolios:

Valry is concerned that the economy did not perform as originally predicted by Driver Associates. She informs Edson that the returns for all the portfolios will likely differ from their expected returns. Use the multifactor equation (1) and the data provided in Exhibit 1 to find the revised returns for Portfolio A.
A. 14.0%.
B. 12.5%.
C. 21.0%.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The multifactor equation for Portfolio A is used to answer this question. Simply insert the factor surprises for FjSand FBC. From Exhibit 1, F|S = 0.01 - 0.02 = -0.01 and FBC = 0.02 - 0.03 = -0.01. Therefore, both factor surprises equal -1%. Substituting into the multifactor equation for Portfolio A: 0.1750 + 2(-0.01) + 1.5 (-0.01) = 14%. (Study Session 18, LOS 64.j)

NEW QUESTION: 2
Which of the following commands is being deprecated and will not be supported in the near future?
A. copy running-config startup-config
B. none of the above
C. copy run start
D. write memory
Answer: D

NEW QUESTION: 3
Which of the following is often the greatest challenge of distributed computing solutions?
A. heterogeneity
B. usability
C. scalability
D. security
Answer: D
Explanation:
The correct answer to this "security". It is a major factor in deciding if a centralized
or decentralized environment is more appropriate.
Example: In a centralized computing environment, you have a central server and workstations
(often "dumb terminals") access applications, data, and everything else from that central servers.
Therefore, the vast majority of your security resides on a centrally managed server. In a
decentralized (or distributed) environment, you have a collection of PC's each with their own
operating systems to maintain, their own software to maintain, local data storage requiring
protection and backup. You may also have PDA's and "smart phones", data watches, USB
devices of all types able to store data... the list gets longer all the time.
It is entirely possible to reach a reasonable and acceptable level of security in a distributed
environment. But doing so is significantly more difficult, requiring more effort, more money, and
more time.
The other answers are not correct because:
scalability - A distributed computing environment is almost infinitely scalable. Much more so than a
centralized environment. This is therefore a bad answer.
heterogeneity - Having products and systems from multiple vendors in a distributed environment is
significantly easier than in a centralized environment. This would not be a "challenge of distributed
computing solutions" and so is not a good answer.
usability - This is potentially a challenge in either environment, but whether or not this is a problem
has very little to do with whether it is a centralized or distributed environment. Therefore, this
would not be a good answer.
Reference:
Official ISC2 Guide page: 313-314
All in One Third Edition page: (unavailable at this time)

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