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NEW QUESTION: 1
A. Option A
B. Option D
C. Option C
D. Option B
Answer: C
NEW QUESTION: 2
An organization's internal auditor discovers that large sums of money have recently been paid to a vendor that management does not recognize. The IT security department is asked to investigate the organization's ERP system to determine how the accounts payable module has been used to make these vendor payments.
The IT security department finds the following security configuration for the accounts payable module:
Which of the following changes to the security configuration of the accounts payable module would BEST mitigate this risk?
A)
B)
C)
D)
A. Option A
B. Option D
C. Option B
D. Option C
Answer: B
NEW QUESTION: 3
What is the purpose of Mesh Clusters?
A. To cluster mesh APs of the same model together.
B. To define a group of mesh APs that create mesh links with each other.
C. To enable mesh APs to join the nearest mesh portal cluster.
D. To separate Mesh points from Mesh Portals.
E. To ensure that mesh APs with the same VAPs are not in the same cluster.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 4
Which of the following expressions represents Jensen's alpha, where is the expected return, is the standard deviation of returns, rm is the return of the market portfolio and rf is the risk free rate:
A. Option A
B. Option D
C. https://www.riskprep.com/images/stories/questions/102.12.b.png
B)
https://www.riskprep.com/images/stories/questions/102.12.d.png
C)
https://www.riskprep.com/images/stories/questions/102.12.c.png
D)
https://www.riskprep.com/images/stories/questions/102.12.a.png
D. Option B
E. Option C
Answer: D
Explanation:
Explanation
The Sharpe ratio is the ratio of the excess returns of a portfolio to its volatility. It provides an intuitive measure of a portfolio's excess return over the risk free rate. The Sharpe ratio is calculated as [(Portfolio return - Risk free return)/Portfolio standard deviation].
The Treynor ratio is similar to the Sharpe ratio, but instead of using volatility in the denominator, it uses the portfolio's beta. Therefore the Treynor Ratio is calculated as [(Portfolio return - Risk free return)/Portfolio's beta]. Therefore Choice 'a' is the correct answer.
Jensen's alpha is another risk adjusted performance measure. It considers only the 'alpha', or the return attributable to a portfolio manager's skill. It is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk free rate (rf), plus the market risk premium (which is given by [Beta x (Market portfolio's return - Risk free rate)]. Jensen's alpha is therefore the actual return earned less the risk free rate and the beta return. Choice 'c' is the correct answer.
Refer to the tutorial on risk adjusted performance measures for more details.