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NEW QUESTION: 1
Which of the following statements is true in relation to the capital markets line (CML):
I. The CML is a transformation line that is tangential to the efficient frontier II. The CML allows an investor to obtain the highest return for a given level of risk chosen according to the investor's risk attitude III. The CML is the line passing through the point on the efficient frontier with the highest Sharpe ratio, and a y-intercept equal to the risk free rate IV. The Sharpe ratio for the points on the CML increase in a linear fashion
A. I and III
B. I, II and III
C. II, III and IV
D. I and II
Answer: B
Explanation:
Explanation
The highest possible transformation line, ie the transformation line with the maximum slope, is the transformation line joining the risk free rate on the y-axis and the portfolio with the maximum Sharpe ratio on the efficient frontier. This line is called the 'capital markets line'. Investors can pick any point on this line according to their risk appetite, and doing so would maximize the return they can obtain for their desired level of risk. The capital markets line is tangential to the efficient frontier. The Sharpe ratio stays constant throughout the CML. Therefore statement IV is not true, while the rest are.

NEW QUESTION: 2
Which of the following is correct?
Debugging is:
A. Identifying the cause of a defect, repairing the code and checking the fix is correct.
B. Checking that no unintended consequences have occurred as a result of a fix.
C. Checking that a previously reported defect has been corrected.
D. Testing/checking whether the software performs correctly.
Answer: A
Explanation:
A. Is a brief definition of testing.
B. Is retesting.
D. Is regression testing.

NEW QUESTION: 3
You have been tasked with publishing a new catalog. Which two fields are available when publishing a new catalog? (Choose two.)
A. Catalog Ordering
B. Image
C. Authorizations
D. Select Datacenter
E. Cloud Name
Answer: B,E