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HP HP2-I54

Selling HP Workstations 2023

Questions and Answers : 347
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NEW QUESTION: 1
Ryan Hendricks serves as a security analyst for Investment Management, Inc. (IMI), which employs the Treynor-Black model to evaluate securities and to make portfolio recommendations. IMI uses the capital asset pricing model (CAPM) to determine the degree to which securities may be mispriced relative to IMFs forecasts.
Hendricks evaluates the common shares of Computer Software Associates (CSA), a small company specializing in a unique computer software market niche. Hendricks obtains the following market model results for CSA, using monthly returns for the past 60 months:

Hendricks uses the adjusted beta method to derive his forecasts for companies' future betas. In deriving his forecast for any company beta, Hendricks uses the following first-order autoregressive formula:
forecast beta = 0.33 + 0.67 x (historical beta) (2)
Hendricks derives required returns for individual securities using the CAPM after making appropriate adjustments using his adjusted beta formula in equation (2).
IMI provides Hendricks with the following capital market forecasts to use as inputs for the CAPM.

IMI asks Hendricks to make decisions to take long and short positions in individual securities for IMl's actively managed portfolio, IMI-Active. Specifically, Hendricks is asked to examine CSA and Millennium Drilling (MD), an oil and gas drilling company specializing in deep sea drilling. After a thorough examination of the prospects for each company, Hendricks derives the following alpha forecasts for CSA and MD.

Hendricks forecasts that the unsystematic variance (the variance of the market model regression error) for MD will be more than double that of CSA.
After determining the appropriate allocations across securities within the IMI-Active portfolio, Hendricks derives the portfolio predictions shown in Exhibit 3.

IMI forecasts that the total standard deviation for the S&P500 returns will equal 20%. After examining the historical forecasting abilities of Hendricks, IMI determines that Hendricks has demonstrated perfect forecasting ability in regards to CSA stock, but imperfect forecasting abilities in regards to MD stock. IMI finds that the correlation between the realized alphas for MD and the forecast MD alphas provided by Hendricks equals 0.50.
Referring to the Treynor-Black model, Hendricks makes the following statements:
Statement 1: All else equal, the Treynor-Black model increases the weight to the active portfolio as its unsystematic risk increases.
Statement 2: The Treynor-Black model is based on the premise that only a limited number of stocks should be included in the actively managed portfolio.
Using the Treynor-Black model along with the alpha and unsystematic variance information for CSA and MD, should CSA or MD receive a larger weight within the IMI-Active portfolio?
A. MD should receive a larger weight.
B. They should be weighted equally.
C. CSA should receive a larger weight.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The Treynor-BIack formula for the CSA weight within the IMI-Activc Portfolio equals:

C2(ECSA) a (£MD) as large as the CSA alpha, but the MD unsystematic variance is more than twice as large as the CSA unsystematic variance. Therefore, CSA should receive larger weight than MD. (Study Session 18, LOS 67.b)

NEW QUESTION: 2
Drag and drop the MPLS VPN device types from me left onto the definitions on the right.

Answer:
Explanation:






NEW QUESTION: 3
Which IPv6 address correctly compresses the IPv6 unicast address 2001:0:0:0:0DB8:0:0:417A?
A. 2001:0DB8:417A
B. 2001:0DB8:0:0:417A
C. 2001::0DB8:417A
D. 2001:DB8:0:0:417A
E. 2001::0DB8:0:0:417A
F. 2001:0DB8:417A
Answer: D
Explanation:
Explanation
Explanation:
The point of this question about the different form of Ipv6 address.
The IPv6 address is 128 bits long, written as eight 16-bit pieces, separated by colons.
Each piece is represented by four hexadecimal digits. You can compact multiple contiguous fields of zero even further. This is the exception to the rule that at least one digit must be present in every field. You can replace multiple fields of zeros with double colons (:).
Note that : can replace only one set of contiguous zero fields.
Multiple :s would make the address ambiguous.

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