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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 a because the Treynor ratio is lowest
B. Fund d because the Treynor ratio is highest
C. Fund c because the Sharpe ratio is lowest
D. Fund b because the annual return is highest
Answer: C
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. Perform a low-level format on the drive. Restore the OS from the factory disks and configure the computer.
B. Configure the user with a new profile on the machine with limited privileges, and hide the original user profile.
C. Destroy the drive with a drill and purchase a new one. Restore the OS from the factory disks and configure.
D. Install a new drive in the computer and leave the original drive in place. Install the OS from the factory disks and configure.
Answer: A
NEW QUESTION: 3
Which of the following statements about securities markets is FALSE?
A. Secondary markets, such as the over-the-counter (OTC) market, provide liquidity and price continuity.
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. When Conglomerate, Inc. trades directly with MultiNational, Ltd., it is using the fourth market.
D. A limit buy order and a stop buy order are both placed below the current market price.
Answer: D
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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