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NEW QUESTION: 1
Millennium Investments (MI), an investment advisory firm, relies on mean-variance analysis to advise its clients. Mi's advisors make asset allocation recommendations by selecting the mix of assets along the capital allocation line that is most appropriate for each client.
One of MPs clients, Edward Alverson, 60 years of age, requests an analysis of four risky mutual funds (Fund W, Fund X, Fund Y, and Fund Z). After examining the four funds, MI finds that all four mutual funds are equally weighted portfolios, and that all of the funds, except Fund Z, are mean-variance efficient. MI also finds that the correlations between all pairs of the mutual funds are less than one.
MI calculates the average variance of returns across all assets within each mutual fund, the average covariance of returns across all pairs of assets within each mutual fund, and each mutual fund's total variance of returns. The results of Mi's calculations are reported in Exhibit 1.

During his meeting with the MT advisors, Alverson explains that he will retire soon, and, consequently, is highly risk-averse. Alverson agrees with Mi's reliance on mean-variance analysis and makes the following statements:
Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
Statement 2: Because I am highly risk-averse, I expect that my investment portfolio on the capital allocation line will have risk and return equal to that of the global minimum variance portfolio.
MI operates under the assumption that all investors agree on the forecasts of asset expected returns, variances, and correlations. Based on these assumptions, MI created the Millennium Investments 5000 Fund (MI-5000), which is a market value-weighted portfolio of all assets in the market. MI derives the forecasts for the MI-5000 Fund and for a fund comprising short-term government securities shown in Exhibit 2.

Given Mi's assumption that all investors have identical expectations of expected returns, variances, and correlations, and given the capital market forecasts in Exhibit 2, MI should conclude that the expected returns on Funds W and Z are:
A. E(R) on Fund Wis less than 0.225.
B. E(R) on both funds are less than 0.225.
C. E(R) on Fund Z is less than 0.225.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Assuming all investors agree on all asset return, variance, and correlation expectations, then the market portfolio has the highest Sharpe ratio. The Sharpe ratio for the market portfolio equals the slope of the capital market line:


NEW QUESTION: 2
リスク評価ツールとしてのヒートマップの使用に関して正しい説明は次のうちどれですか?
1.それらは主に既知のリスクに焦点を合わせ、新しいリスクを特定する能力を制限します。
2.彼らは客観的な評価と関連するリスク許容度に大きく依存しています。
3.それらは複雑すぎて、主要なリスクを簡単に理解できるビューを提供できません。
4.それらは有用ですが、急速に変化する環境では価値が限られています。
A. 2と3のみ
B. 3と4のみ
C. 1と2のみ
D. 1と4のみ
Answer: D

NEW QUESTION: 3
When you fullrecover a switch from Aboot and a USB drive is present in the USB port of the switch, which
of the following statements is true?
A. If the USB drive contains a fullrecover file and a boot-config file with a timestamp different than the one
on USB flash drive, then the USB Drive's contents will be copied to flash, after which the switch will
reboot.
B. Everything on the USB drive is deleted.
C. Only Arista-sourced files are copied from the USB drive to flash: and the switch reboots.
D. Nothing. The USB port is disabled when Aboot is active.
Answer: A
Explanation:
Explanation/Reference:
Reference: https://eos.arista.com/password-recovery-return-to-factory-default/ (how to prepare the USB
drive)

NEW QUESTION: 4
Which one of the following code fragments will create a new table in Magento?

A. Option D
B. Option B
C. Option A
D. Option C
Answer: D

 

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2025 Web-Development-Applications Upgrade Dumps & Web-Development-Applications Test Simulator Online - Exam WGU Web Development Applications Lab Questions - Cads-Group


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