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NEW QUESTION: 1
Answer:
Explanation:
Explanation
NEW QUESTION: 2
An investor has a portfolio with a value of $1,000,000 and a beta of 2.5. He believes the portfolio carries more market risk than he desires and wishes to reduce the beta to 1. How many futures contracts should be buy or sell to reduce the beta if the futures contracts have a beta of 1.2 and the notional value of each contract is
$240,000?
A. Sell 9 contracts
B. Buy 4 contracts
C. Sell 5 contracts
D. Buy 1 contracts
Answer: C
Explanation:
Explanation
The investor's needs to sell futures contracts, as his current position is long. He needs to sell ($1,000,000 x (2.5-1)) / ($240,000 x 1.2) = 5.2 contracts, or rounded to 5 contracts.
It is important to note here that the investor wishes to retain a beta of 1, and does not want to get rid of all market exposure.
NEW QUESTION: 3
Your customer has a hybrid aggregate Essbase cube. They want to be able to model what-if scenarios with hypothetical data and are considering using the Sandbox dimension.
Which two statements represent correct functionality of the Sandbox dimension?
A. When you submit changes to a base member, changes are seen and stored in each sandbox member.
B. Initially, the state of each sandbox member is #missing.
C. The sandbox dimension has one base member and multiple sandbox members.
D. After working in the sandbox environment, you can commit changes to the base environment or even to another sandbox target.
E. Using the sandbox dimension has storage overhead that would be required to replicate data from the base environment.
Answer: A,D
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