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NEW QUESTION: 1
List down the characteristics for both Application Server ABAP (AS ABAP) and Application Server Java (AS Java)?
There are 3 correct answer to this question
Response:
A. Common SID for all application servers and the database
B. Common target database
C. Common database (with different schemas for ABAP and Java)
D. Common startup background
E. Common startup framework
Answer: A,C,E
NEW QUESTION: 2
What are the ISO codes for the Canadian Dollar, the Singapore Dollar, the South African Rand and the Swiss Franc (though not necessarily in that order)?
A. SFR, SGD, ZAR, CAD
B. SAR, CAD, SFR, SGD
C. SGD, ZAR, CAD, CHF
D. CAD, CHF, SGD, SAR
Answer: C
NEW QUESTION: 3
Which of the following statements about portfolio theory is FALSE?
A. Risk aversion results in an upward sloping security market line (SML).
B. When the return on an asset added to a portfolio has a correlation coefficient of less than one with the other portfolio asset returns but has the same risk, adding the asset will not decrease the overall portfolio standard deviation.
C. For a two-stock portfolio, the lowest risk occurs when the correlation coefficient is close to negative one.
D. Assuming that the correlation coefficient is less than one, the risk of the portfolio will always be less than the simple weighted average of individual stock risks.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
This statement misstates the principle of diversification and should read, "When the return on an asset added to a portfolio has a correlation coefficient of less than one with the other portfolio asset returns but has the same risk, adding the asset will decrease the overall portfolio standard deviation." Anytime the correlation coefficient is less than one, there are benefits from diversification. The other choices are true.