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NEW QUESTION: 1
A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?
A. Management of variable lead times
B. Cost of the application software upgrades
C. Complexity of the purchasing process
D. Resistance of material suppliers
Answer: C
NEW QUESTION: 2
Refer to the exhibit.
Exhibit 1.
Exhibit 2.
Assume that Switch-2 is correctly configured for OSPF.
Which additional step must the administrator take to enable Switch-1 to advertise 192.168.2.0/24 to Switch-2?
A. Enable OSPF on VLAN 2.
B. Set a router ID on Switch-1.
C. Configure a route to advertise 192.168.2.0/24 on Switch-1.
D. Add Switch-2's router ID to Switch-1's OSPF neighbor list.
Answer: A
NEW QUESTION: 3
Samuel Edson, CFA, portfolio manager for Driver Associates, employs a multifactor model to evaluate individual stocks and portfolios. Edson examines several possible risk factors and finds two that are priced in the marketplace. These two factors are investor sentiment (IS) risk and business cycle (BC) risk. Edson manages three equity portfolios (A, Bt and Q and derives the following relationships for each portfolio, as well as for the S&P 500 stock market index:
Portfolios A and B are well-diversified, while C is a less than fully diversified, value-oriented portfolio. FJS is the surprise in investor sentiment, and FBC is the surprise in the business cycle. Surprises in the risk factors are defined as the difference between the actual value and the predicted value.
Exhibit 1 provides data for the actual and predicted values for the investor sentiment and business cycle risk factors.
Driver Associates uses a two-factor Arbitrage Pricing Model to develop equilibrium expected returns for individual stocks and portfolios:
E(R) = risk free rate + , + , (8)
where:
At the time of Edson's analysis, the long-term government bond yield was 5%.
Equations (1) through (4) are examples of:
A. fundamental factor models.
B. statistical factor models.
C. macroeconomic factor models.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The models in equations 1 through 4 employ factors derived from macioeconomic variables. (Study Session 18, LOS 64.j)
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