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NEW QUESTION: 1
Which of the following statements about Arbitrage Pricing Theory (APT) and the Capital Asset Pricing Model (CAPM) is FALSE?
A. In both the APT and the CAPM, the risk-free rate is added to a premium for risk factor (X) and the responsiveness of the asset's returns to factor (X).
B. APT is a multi-factored model with restrictive assumptions.
C. APT can equal CAPM.
D. If zero-investment arbitrage does not hold, the APT does not hold.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Arbitrage Pricing Theory is a multifactored model with few limiting assumptions. More than one risk factor is able to influence security prices.
The other statements are true. Arbitrage Pricing Theory can equal the Capital Asset Pricing Model (CAPM) if there is only one risk factor - market risk. Zero-investment arbitrage is an assumption of the APT. More specifically, zero-investment arbitrage means that if an investor buys an overpriced security, the investor has access to the short-sale money needed to buy an underpriced security.
NEW QUESTION: 2
When deploying Cisco FirePOWER appliances, which option must you configure to enable VLAN rewriting?
A. virtual switch
B. inline set
C. virtual router
D. hybrid interfaces
Answer: A
Explanation:
Explanation
http://www.cisco.com/c/en/us/td/docs/security/firepower/hw/firepower_device/firep
ower_7k8k_device/deployment.html
NEW QUESTION: 3
Which is an important factor when working in a distributed model?
A. Use of sophisticated tools and techniques
B. Functional roles work in the same location
C. Effective communication via information portals
D. Staff physically co-located to ensure team cohesion
Answer: C
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