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NEW QUESTION: 1
Security A has a beta of 1.2 while security B has a beta of 1.5. If the risk free rate is 3%, and the expected total return from security A is 8%, what is the excess return expected from security B?
A. 7.17%
B. 6.25%
C. 9.25%
D. 4.17%
Answer: B
Explanation:
Explanation
This question requires us to use the CAPM.
Recall that according to CAPM the expected return on an asset = The risk free rate + x Market risk premium.
Using the beta and expected return of security A, we can determine the market risk premium to be (8% -
3%)/1.2 = 4.1667%. The excess return is the return over the risk free rate, and for security B, this is nothing but the beta multiplied by the market risk premium. Therefore the correct answer is 4.1667% x 1.5 = 6.25%.
Note that this is the 'excess return', and not the total return. (Total return will include the risk free rate).
NEW QUESTION: 2
A. Option C
B. Option D
C. Option A
D. Option B
Answer: A
NEW QUESTION: 3
You administer a Microsoft SQL Server 2012 database. The database is currently
configured to log ship to a secondary server.
You are preparing to cut over to the secondary server by stopping log-shipping and
bringing the secondary database online. You want to perform a tail-log backup.
You need to leave the primary database in a restoring state. Which option of the BACKUP LOG command should you use?
A. FORMAT
B. STANDBY
C. NORECOVERY
D. NO_TRUNCATE
Answer: C
NEW QUESTION: 4
A web hosting company received reports of slow performance from four out of the five clients. Upon investigation, it was determined that a hosted virtual machine was using more RAM and CPU than the others. Which of the following MOST likely contributed to the issue?
A. Resource pooling
B. Storage allocation
C. Soft quota limits
D. Hard quota limits
Answer: A