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NEW QUESTION: 1


Answer:
Explanation:

Explanation

NEW QUESTION: 2
As an API Engineer your team has had issues with security vulnerabilities and poor coding practices in the past. You would like to improve your team's reputation within the organization. What step could take to improve your process?
A. Add smoke tests to your CI/CD process
B. Ask the developers to run unit tests prior to code check-in.
C. Ask the developers to run anti-virus against the code prior to check in.
D. Add code quality analysis into your CI/CD process.
Answer: C

NEW QUESTION: 3
Consider the following graph of the Security Market Line (SML). The letters X, Y, and Z represent risky asset portfolios. The SML crosses the y-axis at the point 0.07. The expected market return equals 13.0 percent. Note: The graph is NOT drawn to scale.
Using the graph above and the information provided, determine which of the following statements is TRUE.
A. The correct label for the x-axis is total risk.
B. The expected return (or holding period return) for Portfolio Z equals 14.8%.
C. Portfolio X's required return is greater than the market expected return.
D. Portfolio Y is undervalued.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
At first, it appears that we are not given the information needed to calculate the holding period, or expected return (beginning price, ending price, or annual dividend). However, we are given the information required to calculate the required return (CAPM) and since Portfolio Z is on the SML, we know that the required return (RR) equals the expected return (ER). So, ER = RR = Rf+ (ERM- Rf) * Beta = 7.0% + (13.0% -
7.0%) * 1.3 = 14.8%.
The SML plots beta (orsystematic risk) versus expected return, the CML plots total risk (systematic plus unsystematic risk) versus expected return. Portfolio Y is overvalued - any portfolio located below the SML has an RR > ER and is thus overpriced. Since Portfolio X plots above the SML, it is undervalued and the statement should read, "Portfolio X's required return islessthan the market expected return."