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NEW QUESTION: 1
You combine three assets (A, B, and C) into a portfolio. What is the expected return and standard deviation of the portfolio? You will put 25% of your funds into Asset A with an expected return of 5% and a standard deviation of zero, 50% of your funds into Asset B with an expected return of 10% and a standard deviation of 5%, and 25% of your funds into Asset C with an expected return of 5% with a standard deviation of zero.
A. .075 .075
B. .075 .025
C. .05 .10
D. .025 .05
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Return = (.25)(.05) + (.50)(.10) + (.25)(.05) = .075Trick, the zero standard deviation causes everything to go to zero.
σp = √[AA+BB+CC+ 2wAwBσAσBρAB+ 2wAwCσAσCρAC+2wCwBσCσBρCB]
σp = √[.2(0+ .5(.05+ .2(0+ 2(.25)(.5)(0)(.05)(?) + 2(.25)(.25)(0)(0)(?) +2(.25)(.5)(0)(.5)(?)]
σp = √[5(.05= 50(.05) = .025 with risk free assets in the portfolio the only risk is associated with the portion of funds invested in the risky asset.

NEW QUESTION: 2
The Chief Executive Officer (CEO) of a company has considered implementing a cost-saving measure that might result in new risk to the company. When deciding whether to implement this measure, which of the following would be the BEST course of action to manage the organization's risk?
A. Capture the risk in a prioritized register that is shared routinely with the CEO
B. Present the detailed risk resulting from the change to the company's board of directors
C. Pilot new mitigations that cost less than the total amount saved by the change
D. Modify policies and standards to discourage future changes that increase risk
Answer: A

NEW QUESTION: 3
(single) Which layer of the OSI model does the router mainly work on?
A. Physical layer
B. Network layer
C. Transport layer
D. Link layer
Answer: B