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NEW QUESTION: 1
Ryan Hendricks serves as a security analyst for Investment Management, Inc. (IMI), which employs the Treynor-Black model to evaluate securities and to make portfolio recommendations. IMI uses the capital asset pricing model (CAPM) to determine the degree to which securities may be mispriced relative to IMFs forecasts.
Hendricks evaluates the common shares of Computer Software Associates (CSA), a small company specializing in a unique computer software market niche. Hendricks obtains the following market model results for CSA, using monthly returns for the past 60 months:
Hendricks uses the adjusted beta method to derive his forecasts for companies' future betas. In deriving his forecast for any company beta, Hendricks uses the following first-order autoregressive formula:
forecast beta = 0.33 + 0.67 x (historical beta) (2)
Hendricks derives required returns for individual securities using the CAPM after making appropriate adjustments using his adjusted beta formula in equation (2).
IMI provides Hendricks with the following capital market forecasts to use as inputs for the CAPM.
IMI asks Hendricks to make decisions to take long and short positions in individual securities for IMl's actively managed portfolio, IMI-Active. Specifically, Hendricks is asked to examine CSA and Millennium Drilling (MD), an oil and gas drilling company specializing in deep sea drilling. After a thorough examination of the prospects for each company, Hendricks derives the following alpha forecasts for CSA and MD.
Hendricks forecasts that the unsystematic variance (the variance of the market model regression error) for MD will be more than double that of CSA.
After determining the appropriate allocations across securities within the IMI-Active portfolio, Hendricks derives the portfolio predictions shown in Exhibit 3.
IMI forecasts that the total standard deviation for the S&P500 returns will equal 20%. After examining the historical forecasting abilities of Hendricks, IMI determines that Hendricks has demonstrated perfect forecasting ability in regards to CSA stock, but imperfect forecasting abilities in regards to MD stock. IMI finds that the correlation between the realized alphas for MD and the forecast MD alphas provided by Hendricks equals 0.50.
Referring to the Treynor-Black model, Hendricks makes the following statements:
Statement 1: All else equal, the Treynor-Black model increases the weight to the active portfolio as its unsystematic risk increases.
Statement 2: The Treynor-Black model is based on the premise that only a limited number of stocks should be included in the actively managed portfolio.
To adjust for Hendricks' forecasting record, what alpha forecasts should IMI use for CSA and MD?
A. 0.04 for CSA and 0.04 for MD.
B. 0.06 for CSA and 0.04 for MD.
C. 0.04 for CSA and 0.02 for MD.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The formula to adjust alphas for forecasting ability equals
the square of the correlation between past realized alphas and the
past forecast alphas derived by Hendricks. A perfect forecaster will have an R2 equal to 1, Therefore, there is no adjustment to be made for the CSA alpha because Hendricks has exhibited perfect forecast ability for the CSA stock. An adjustment should be made for the MD stock:
adjusted alpha for MD = (0.50)2(0.08) = 0-02 = 2%
(Study Session 18, LOS 67.c)
NEW QUESTION: 2
You are designing a solution that will analyze bank transactions in real time. The transactions will be evaluated by using an algorithm and classified into one of five groups. The transaction data will be enriched with information taken from Azure SQL Database before the transactions are sent to the classification process. The enrichment process will require custom code. Data from different banks will require different stored procedures.
You need to develop a pipeline for the solution.
Which components should you use for data ingestion and data preparation? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
Explanation:
References:
https://docs.microsoft.com/bs-latn-ba/azure/architecture/example-scenario/data/fraud-detection
NEW QUESTION: 3
ソリューションアーキテクトは、バージニア北部のデータセンターでアプリケーションを実行している会社のネットワークソリューションを設計しています。会社のデータセンターのアプリケーションは、同じアカウント内でus-east-1にある仮想プライベートクラウド(VPC)とus-west-2にあるセカンダリVPCで実行されるアプリケーションに対して予測可能なパフォーマンスを必要とします。会社のデータセンターは、us-est-1リージョンにサービスを提供するAWS Direct Connect施設に併置されています。同社はすでにAWS Direct Connect接続を注文しており、クロスコネクトが確立されています。
最低コストで要件を満たすソリューションはどれですか?
A. Direct Connectゲートウェイをプロビジョニングし、us-east-1のVPCには仮想プライベート(VGW)を、us-west-2のVPCにはVGWを接続します。 Direct Connect接続でプライベートVIFを作成し、Direct Connectゲートウェイに関連付けます。
B. us-est-1およびus-west-2リージョンにある会社の各VPCのDirect Connect接続でプライベートVIFを作成します。企業のデータセンタールーターを構成して、プライベートVIFを介してこれらの地域のVPCに直接接続します。
C. us-west-2リージョンに接続できるDirect Connect機能への2番目のDirect Connect接続を注文します。パートナーと協力して、Direct Connect施設から会社のデータセンターへのダークファイバーを介したネットワーク拡張リンクを確立します。各地域の会社の各VPCのDirect Connect接続でプライベートVIFを確立します。企業のデータセンタールーターを構成して、プライベートVIFを介してこれらの地域のVPCに直接接続します。
D. us-east-1リージョンでAmazon EC2ベースのルーターインスタンスを使用して中継VPCソリューションをデプロイします。
us-east-1およびus-west-2リージョンにある中継ルーターと仮想プライベートゲートウェイ(VGW)の間にIPsec VPNトンネルを確立します。これらは、それらのリージョンの会社のVPCに接続されます。 Direct Connect接続でパブリックVIFを作成し、トランジットルーターと会社のデータセンタールーター間のパブリックVIFでIPsec VPNトンネルを確立します。
Answer: D
Explanation:
https://aws.amazon.com/blogs/aws/new-aws-direct-connect-gateway-inter-region-vpc-access/