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NEW QUESTION: 1
Factor Analytics Capital Management makes portfolio recommendations using various factor models.
Mauricio Rodriguez, a Factor Analytics research analyst, is examining the prospects of two portfolios, the FACM Century Fund (CF) and the FACM Esquire Fund (EF).
The variance of returns are identical for the two funds. The estimates in Exhibit 1 were derived for CF and EF using monthly data for the past five years.

Supervisor Barbara Woodson asks Rodriguez to use the Capita! Asset Pricing Model (CAPM) and a multifactor model (APT) to make a decision to continue or discontinue the EF fund. The two factors in the multifactor model are not identified. To help with the decision, Woodson provides Rodriguez with the capital market forecasts in Exhibit 2.

After examining the prospects for the EF portfolio, Rodriguez derives the forecasts in Exhibit 3.

Rodriguez also develops a 2-factor macroeconomic factor model for the EF portfolio. The two factors used in the model are the surprise in GDP growth and the surprise in Investor Sentiment. The equation for the macro factor model is:

During an investment committee meeting, Woodson makes the following statements related to the 2-factor macroeconomic factor model.
Statement 1: An investment combination in CF and EF that provides a GDP growth factor beta equal to one and an Investor Sentiment factor beta equal to zero will have lower active factor risk than a tracking portfolio consisting of CF and EF.
Statement 2: When markets are in equilibrium, no combination of CF and EF will produce an arbitrage opportunity In their final meeting, Rodriguez informs Woodson that the CF portfolio consistently outperformed its benchmark over the past five years. Rodriguez makes the following comments to Woodson: "The consistency with which CF outperformed its benchmark is amazing. The difference between the CF monthly return and its benchmark return was nearly always positive and varied little over time." Are Woodson's Statements 1 and 2 regarding the macro factor model correct?
A. Both statements are correct.
B. Only Statement 2 is correct.
C. Only Statement 1 is correct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
A portfolio that has a factor beta equal to one for one factor and factor betas equal to zero for all other factors is called a "factor portfolio." In contrast, a portfolio that has factor betas equal to the benchmark factor betas is called a "tracking portfolio." Unlike the tracking portfolio, the factor portfolio betas are not identical to the benchmark betas. As a result, factor portfolios have higher active factor risk (which refers to the deviations of a portfolio's factor betas from those of the benchmark). Therefore, Woodson's first statement is not correct.
Her second statement is correct. When markets are in equilibrium, all expected (i.e., forecast) asset returns equal their required returns. An arbitrage opportunity refers to an investment that requires no cost and no risk yet still provides a profit. If markets are in equilibrium, no profits can be earned from a costless, riskless investment. (Study Session 18, LOS 64.j,m)

NEW QUESTION: 2
A company creates loads to ship sales orders.
Loads must be shipped by using the lowest freight rates possible.
You need to use the load planning workbench to create a load for sales order shipments.
Which configuration options should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 3
DRAG DROP
You need to build a stored procedure that amortizes the invoice amount. Which code segment should you use to create the stored procedure? To answer, move the appropriate code segments from the list of code segments to the answer area and arrange them in the correct order.
Build List and Reorder:

Answer:
Explanation:

NEW QUESTION: 4
ネットワーク管理者は、R＆Dグループに新しいネットワークを割り当てる必要があります。ネットワークファイアウォールまたは他の外部の誤設定に関係なく、インターネットからインターネットにアクセスできないようにする必要があります。これを実現するために、ネットワーク管理者が実装する必要がある設定は次のうちどれですか？
A. スイッチで保護ポートを有効にします
B. R＆DネットワークでNATを使用
C. OSのデフォルトTTLを1に設定します
D. ルーターACLを実装します
Answer: C