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NEW QUESTION: 1
Given the following diversified mutual fund performance data, which fund has the best risk adjusted performance if the risk free rate of return is 5.7%
A. Fund c because the Sharpe ratio is lowest
B. Fund a because the Treynor ratio is lowest
C. Fund b because the annual return is highest
D. Fund d because the Treynor ratio is highest
Answer: A
NEW QUESTION: 2
A user who works with sensitive data has received a new computer. The user's old computer is in good condition, and the manager has asked IT to repurpose it for a different user. Which of the following describes best practices for repurposing the computer within the company?
A. Install a new drive in the computer and leave the original drive in place. Install the OS from the factory disks and configure.
B. Destroy the drive with a drill and purchase a new one. Restore the OS from the factory disks and configure.
C. Perform a low-level format on the drive. Restore the OS from the factory disks and configure the computer.
D. Configure the user with a new profile on the machine with limited privileges, and hide the original user profile.
Answer: C
NEW QUESTION: 3
Which of the following statements about securities markets is FALSE?
A. When Conglomerate, Inc. trades directly with MultiNational, Ltd., it is using the fourth market.
B. Characteristics of a well-functioning securities market include: many buyers and sellers willing to trade at below market price, low bid-ask spreads, timely information on price and volume of past transactions, and accurate information on supply and demand.
C. A limit buy order and a stop buy order are both placed below the current market price.
D. Secondary markets, such as the over-the-counter (OTC) market, provide liquidity and price continuity.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
A limit buy is placed below the current market price, but a stop buy order is placed above the current market price (stop buy orders are often placed to protect a short sale from a rising market).
The other choices are true. A well-functioning securities market includes the following characteristics:
The fourth market is the direct exchange of securities (no intermediaries and no transaction costs).
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