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NEW QUESTION: 1
Ryan Hendricks serves as a security analyst for Investment Management, Inc. (IMI), which employs the Treynor-Black model to evaluate securities and to make portfolio recommendations. IMI uses the capital asset pricing model (CAPM) to determine the degree to which securities may be mispriced relative to IMFs forecasts.
Hendricks evaluates the common shares of Computer Software Associates (CSA), a small company specializing in a unique computer software market niche. Hendricks obtains the following market model results for CSA, using monthly returns for the past 60 months:

Hendricks uses the adjusted beta method to derive his forecasts for companies' future betas. In deriving his forecast for any company beta, Hendricks uses the following first-order autoregressive formula:
forecast beta = 0.33 + 0.67 x (historical beta) (2)
Hendricks derives required returns for individual securities using the CAPM after making appropriate adjustments using his adjusted beta formula in equation (2).
IMI provides Hendricks with the following capital market forecasts to use as inputs for the CAPM.

IMI asks Hendricks to make decisions to take long and short positions in individual securities for IMl's actively managed portfolio, IMI-Active. Specifically, Hendricks is asked to examine CSA and Millennium Drilling (MD), an oil and gas drilling company specializing in deep sea drilling. After a thorough examination of the prospects for each company, Hendricks derives the following alpha forecasts for CSA and MD.

Hendricks forecasts that the unsystematic variance (the variance of the market model regression error) for MD will be more than double that of CSA.
After determining the appropriate allocations across securities within the IMI-Active portfolio, Hendricks derives the portfolio predictions shown in Exhibit 3.

IMI forecasts that the total standard deviation for the S&P500 returns will equal 20%. After examining the historical forecasting abilities of Hendricks, IMI determines that Hendricks has demonstrated perfect forecasting ability in regards to CSA stock, but imperfect forecasting abilities in regards to MD stock. IMI finds that the correlation between the realized alphas for MD and the forecast MD alphas provided by Hendricks equals 0.50.
Referring to the Treynor-Black model, Hendricks makes the following statements:
Statement 1: All else equal, the Treynor-Black model increases the weight to the active portfolio as its unsystematic risk increases.
Statement 2: The Treynor-Black model is based on the premise that only a limited number of stocks should be included in the actively managed portfolio.
Are Statements 1 and 2 made by Hendricks correct or incorrect?
A. Both statements are correct.
B. Only Statement 1 is correct.
C. Only Statement 2 is correct.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Hendricks is incorrect with regard to Statement 1 and is correct with regard to Statement 2. The Treynor- Black model weights the active portfolio according to its alpha and its unsystematic risk. Keeping alpha constant, a higher unsystematic risk makes the portfolio less desirable-adding unsystematic risk to the overall investment. The Treynor-Black model is based on the premise that markets are "nearly" efficient- that there are only a limited number of meaningfully mispriced securities. Alternatively, the Treynor-Black model assumes that the investment management firm can thoroughly examine only a limited number of securities. (Study Session 18, LOS 67.b)

NEW QUESTION: 2
Unity 400システムには、Data at Rest Encryptionのライセンスがあり、有効になっています。 SPの交換後もシステムが正常に動作するようにするには、Unisphere設定ウィンドウからどの操作を実行する必要がありますか？
A. バックアップキーストアファイル
B. 監査ログをダウンロードする
C. 監査ログとチェックサムをダウンロードする
D. ダウンロードチェックサム
Answer: C

NEW QUESTION: 3
A customer has acquired a new business and wants to bring its systems and storage under corporate systems. The company has an IBM SVC in the environment to manage all storage.
What must the customer do with the volumes from the new businesses storage to bring them under IBM Spectrum Virtualize management?
A. Import the volumes using Volume Mirror
B. Import the volumes using Managed mode
C. Import the volumes in Image Mode
D. Import the volumes as a storage pool
Answer: C
Explanation:
Explanation/Reference:
Image mode volumes are used to migrate LUNs that were previously mapped directly to host servers over to the control of the IBM Spectrum Virtualize system.
Note: mkimagevolume
Create a new image mode volume. This command can be used to import a volume, preserving existing data.
References: Implementing the IBM Storwize V7000 and IBM Spectrum Virtualize V7.8, page 215
http://www.redbooks.ibm.com/redpieces/pdfs/sg247938.pdf

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