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NEW QUESTION: 1
Amie Lear, CFA, is a quantitative analyst employed by a brokerage firm. She has been assigned by her supervisor to cover a number of different equity and debt investments. One of the investments is Taylor, Inc. (Taylor), a manufacturer of a wide range of children's toys. Based on her extensive analysis, she determines that her expected return on the stock, given Taylor's risks, is 10%. In applying the capital asset pricing model (CAPM), the result is a 12% rate of return.
For her analysis of the returns of Devon, Inc. (Devon), a manufacturer of high-end sports apparel, Lear intends to use the Fama-French model (FFM). Devon is a small-cap growth stock that has traded at a low market-to-book value in recent years. Lear's analysis has provided a wealth of quantitative information to consider. The return on a value-weighted market index minus the risk-free rate is 5.5%, the small-cap return premium is 3.1%, the value return premium is 2.2%, and the liquidity premium is 3.3%. The risk-free rate is 3.4%. The market, size, relative value, and liquidity betas for Devon are 0.7, -0.3, 1.4, and 1.2, respectively. In estimating the appropriate equity risk premium, Lear has chosen to use the Gordon growth model.
Lear's assistant, Doug Saunders, presents her with a report on macroeconomic multifactor models that includes the following two statements:
Statement 1: Business cycle risk represents the unexpected change in the difference between the return of risky corporate bonds and government bonds.
Statement 2: Confidence risk represents the unexpected change in the level of real business activity.
Lear is also attempting to determine the most appropriate method for determining the required return for Densmore, Inc. (Densmore), a closely held company that is considering a debt issue within the next year.
The company has not previously issued debt securities to the public, relying instead on bank financing.
She realizes that there are a number of models to consider, including the CAPM, multifactor models, and build-up models.
Are Saunders' statements regarding the macroeconomic multifactor models correct?
A. Only Statement 2 is correct.
B. Both statements are incorrect.
C. Only Statement I is correct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Neither of Saunder's statements is correct. Confidence risk represents the unexpected change in the difference between the return of risky corporate bonds and corporate bonds. Business cycle risk represents the unexpected change in the level of real business activity. (Study Session 10, LOS 35.d)

NEW QUESTION: 2
Given this configuration file:

Which of the following describes the resulting behavior for a job consisting of Row Generator -> data set?
A. Conductor process is executed on the server is1. Section leader and Player processes are executed on the server is2.
B. Conductor process and player processes are executed on the server is1. Section leader process is executed on the server is2.
C. Conductor and section leader processes are executed on the server is1. Player processes are executed on the server is2.
D. Conductor, section leader and player processes are executed on the server is1 and is2.
Answer: C

NEW QUESTION: 3
Click on the exhibit below.

Assume PE-1 has a mesh-sdp configured to every PE node in both Metro networks. What could be done to prevent the bandwidth replication between Metro 1 and Metro 2?
A. PE-1 can be configured with spoke-SDPs to every PE node in both Metro networks. This will reduce the bandwidth and replication within the network.
B. PE-1 must be configured with mesh-SDPs to every node receiving the multicast traffic. There is no way to reduce the replication or bandwidth.
C. PE nodes in Metro 1 could be configured with mesh-SDPs. PE nodes in Metro 2 would be configured with mesh-SDPs. However, the connection between Metro networks (PE-2 to PE-6) can be configured with a spoke-sdp. This would reduce the replication and bandwidth used on the link between Metro networks. This also reduces the replication required by PE-1.
D. PE nodes in Metro 1 could be configured with spoke-SDPs. PE nodes in Metro 2 would be configured with spoke-SDPs. However, the connection between Metro networks (PE-2 to PE-6) can be configured with a mesh-sdp. This would reduce the replication and bandwidth used on the link between Metro networks. This also reduces the replication required by PE-1.
Answer: C