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NEW QUESTION: 1
See the exhibit:

Which of the above INSERT statements are valid?
A. Only the first, second and third statements are valid
B. Only the first and second statements are valid
C. Only the first statement is valid
D. All the statement are valid
E. Only the first and fourth statements are valid
Answer: A
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 2
Kira Trace, research analyst at an investment banking firm, took the Level 1 CFA examination in 2001, but did not pass. Last year, she studied alone, and only for one-month before the exam. This year, she is starting earlier and is working with a mentor, Anton Park, CFA. While discussing asset pricing models with Park, Trace makes the following statements. Park can see that Trace still needs to study this area because only one of her statements is correct. Which statement is CORRECT?
A. It is difficult for the individual investor to achieve the benefits from diversification because significantly reducing risk requires the purchase of approximately 1,000 securities.
B. Adding the risk-free asset to a portfolio will reduce return and total risk.
C. Assuming assets are not perfectly positively correlated, the systematic risk of a portfolio decreases as more assets are added.
D. According to the Capital Asset Pricing Model (CAPM), the rate of return of a portfolio with a beta of 1.0 and an alpha of 0 is the market expected return.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Diversification reduces unsystematic or unique risk. With the risk-free asset and a portfolio of risky assets, the equation for the expected standard deviation is linear:wAꢀꢀꢀ. A combination of the risk free asset and a portfolio always gives more return for a given level of risk. Risk tends to be reduced, but assuming that assets are not perfectly positively correlated, an investor can achieve the benefits of diversification by adding just one security (Markowitz). Studies have shown that approximately 18-30 stocks are needed for proper diversification. The main point is that the number ofstocks required is small and is significantly less than all securities (and significantly less than 1,000 securities).

NEW QUESTION: 3
You are reviewing a vSphere platform design. The system is planning to use a virtual vCenter server. Which of the following is true if the vCenter fails when using this design?
A. vCenter must be configured in Linked mode.
B. VMware HA can protect and restart the vCenter.
C. DRS is unaffected.
D. The VCSA cannot be used.
Answer: B
Explanation:
DRS is controlled by the vCenter. vCenter invokes vMotion based on metrics. During
the period where the vCenter is out of action, DRS is not functional. VMware HA can
mitigate against issues by restarting the vCenter in the event of an outage.

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