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Working previously in the financial industry and studying finance and risk in graduate school, you are familiar with Markowitz's Efficient Frontier theory. Now assume you are the portfolio manager for a state government agency. Your agency has a reputation of being risk adverse but given recent budget cuts, you have convinced your executive team it needs to pursue some new programs and projects to demonstrate its benefits to the state.
You decided to apply the Efficient Frontier concepts to show them the current state of its components in terms of risk and associated costs. You explained the portfolio is efficient if it has:
A. The possible overall portfolio value with the greatest possible benefits
B. A mix of components-from high risk/high return to low risk/low return
C. The ability to quantify the value of risk in monetary terms
D. The best possible expected level of return for its level of risk
Answer: D

NEW QUESTION: 2
Soil is formed when the rock at Earth's surface weathers. Normally, soil develops into three layers, called horizons. The illustration below shows the A, B, and C horizons of a typical soil profile.

Based on the diagram, if the surface vegetation were removed, which would be the likely effect on the soil?
A. The B horizon would disappear entirely.
B. The A horizon would enlarge.
C. The top 1 or 2 unprotected layers might wash away.
D. The order of the horizons would be reversed.
E. The C horizon would be further buried.
Answer: C

NEW QUESTION: 3
Azureサブスクリプションの可用性に影響を与える可能性がある計画されたメンテナンスイベントの一覧を表示する必要があります。
Azureポータルからどのブレードを使用する必要がありますか?解答するには、解答エリアで適切なブレードを選択してください。

Answer:
Explanation:


NEW QUESTION: 4
Ein Projekt befindet sich in der Ausführungsphase. Ein Risikomanagementplan wurde implementiert und die Risikoanalyse wird fortgesetzt.
Wie sollen die Auswirkungen identifizierter Risiken dem Stakeholder mitgeteilt werden?
A. Zeigen Sie die Gründe für bevorstehende Risiken entweder anhand eines Affinitätsdiagramms oder eines Matrixdiagramms an.
B. Zeichnen Sie eine Wahrscheinlichkeits- und Auswirkungsmatrix oder ein hierarchisches Diagramm, um Risiken zu priorisieren.
C. Nehmen Sie am Opportunity Management der identifizierten Risiken für den Mehrwert teil.
D. Berechnen Sie die für die Risikoreaktion erforderlichen Notfallfinanzierungen und Zeitpuffer
Answer: B


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