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NEW QUESTION: 1
A tax authority requires that you calculate tax only on the selling price of an item that you are selling, and not on the shipping charge.
How will you achieve this?
A. by using nested action and Groovy scripts
B. by moving the "Compute Tax" step before the "Create Shipping Charges" step in the
Pricing algorithm
C. by creating a sub- algorithm and an expression builder
D. by moving the "Compute Tax" step before the "Create Net Price Charge Component" step in the Pricing algorithm
Answer: B

NEW QUESTION: 2
What may be funded from a risk budget?
A. Implementation of a fallback plan
B. Preparation of the risk management approach
C. Impact analysis of requests for change
D. Corrections required due to off-specifications
Answer: A
Explanation:
Explanation/Reference:
Reference http://prince2.wiki/Risk#Risk_Budget

NEW QUESTION: 3
Millennium Investments (MI), an investment advisory firm, relies on mean-variance analysis to advise its clients. Mi's advisors make asset allocation recommendations by selecting the mix of assets along the capital allocation line that is most appropriate for each client.
One of MPs clients, Edward Alverson, 60 years of age, requests an analysis of four risky mutual funds (Fund W, Fund X, Fund Y, and Fund Z). After examining the four funds, MI finds that all four mutual funds are equally weighted portfolios, and that all of the funds, except Fund Z, are mean-variance efficient. MI also finds that the correlations between all pairs of the mutual funds are less than one.
MI calculates the average variance of returns across all assets within each mutual fund, the average covariance of returns across all pairs of assets within each mutual fund, and each mutual fund's total variance of returns. The results of Mi's calculations are reported in Exhibit 1.

During his meeting with the MT advisors, Alverson explains that he will retire soon, and, consequently, is highly risk-averse. Alverson agrees with Mi's reliance on mean-variance analysis and makes the following statements:
Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
Statement 2: Because I am highly risk-averse, I expect that my investment portfolio on the capital allocation line will have risk and return equal to that of the global minimum variance portfolio.
MI operates under the assumption that all investors agree on the forecasts of asset expected returns, variances, and correlations. Based on these assumptions, MI created the Millennium Investments 5000 Fund (MI-5000), which is a market value-weighted portfolio of all assets in the market. MI derives the forecasts for the MI-5000 Fund and for a fund comprising short-term government securities shown in Exhibit 2.

Given Mi's assumption that all investors have identical expectations of expected returns, variances, and correlations, and given the capital market forecasts in Exhibit 2, MI should conclude that the expected returns on Funds W and Z are:
A. E(R) on Fund Z is less than 0.225.
B. E(R) on Fund Wis less than 0.225.
C. E(R) on both funds are less than 0.225.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Assuming all investors agree on all asset return, variance, and correlation expectations, then the market portfolio has the highest Sharpe ratio. The Sharpe ratio for the market portfolio equals the slope of the capital market line: