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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:
Driver Associates uses Portfolios D, E, and F as part of their risk management strategies. Which of these portfolios are factor portfolios?
A. Portfolio F only.
B. Portfolios D and F.
C. Portfolios D and E.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
A portfolio that has a sensitivity of 1.0 to one of the macroeconomic factors> and zero sensitivity to the remaining macroeconomic factors is called a factor portfolio. Portfolios D and E are factor portfolios. A portfolio that has factor sensitivities that equal the sensitivities of the benchmark is called a tracking portfolio. Portfolio F has factor sensitivities that exactly match those of the S&P 500. (Study Session 18, LOS 64-m)
NEW QUESTION: 2
Buffer overflow vulnerabilities, of web applications, occurs when the application fails to guard its buffer properly and allows writing beyond its maximum size. Thus, it overwrites the _________. There are multiple forms of buffer overflow, including a Heap Buffer Overflow and a Format String Attack.
A. Adjacent memory locations
B. Adjacent bit blocks
C. Adjacent buffer locations
D. Adjacent string locations
Answer: A
NEW QUESTION: 3
What are the four major pillars of capability within Information Server?
A. Design, Adapt, Run, Audit
B. Understand, Cleanse, Transform, Deliver
C. Cleanse, Load, Investigate, Report
D. Develop, Deploy, Manage, Measure
Answer: B