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NEW QUESTION: 1
Which of the following expressions represents Jensen's alpha, where is the expected return, is the standard deviation of returns, rm is the return of the market portfolio and rf is the risk free rate:
A. Option A
B. https://www.riskprep.com/images/stories/questions/102.12.b.png
B)
https://www.riskprep.com/images/stories/questions/102.12.d.png
C)
https://www.riskprep.com/images/stories/questions/102.12.c.png
D)
https://www.riskprep.com/images/stories/questions/102.12.a.png
C. Option B
D. Option C
E. Option D
Answer: C
Explanation:
Explanation
The Sharpe ratio is the ratio of the excess returns of a portfolio to its volatility. It provides an intuitive measure of a portfolio's excess return over the risk free rate. The Sharpe ratio is calculated as [(Portfolio return - Risk free return)/Portfolio standard deviation].
The Treynor ratio is similar to the Sharpe ratio, but instead of using volatility in the denominator, it uses the portfolio's beta. Therefore the Treynor Ratio is calculated as [(Portfolio return - Risk free return)/Portfolio's beta]. Therefore Choice 'a' is the correct answer.
Jensen's alpha is another risk adjusted performance measure. It considers only the 'alpha', or the return attributable to a portfolio manager's skill. It is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk free rate (rf), plus the market risk premium (which is given by [Beta x (Market portfolio's return - Risk free rate)]. Jensen's alpha is therefore the actual return earned less the risk free rate and the beta return. Choice 'c' is the correct answer.
Refer to the tutorial on risk adjusted performance measures for more details.

NEW QUESTION: 2
Cisco is a medium sized accounting firm that has four offices around the country. The head office is in Phoenix with branches in Boston, Chicago and Los Angeles. Cisco wants connectivity between these offices with minimal expense due to a limited budget.
What topology would you recommend for Cisco ?
A. Full mesh
B. Ring
C. Partial mesh
D. Star hub and spoke
Answer: D
Explanation:
The star topology specifies a core router that serves as the hub for the WAN connections.
Designers often refer to this topology as a hub-and-spoke topology. The core router connects to each of the branch offices; in fact, branch offices can only communicate with each other if they pass their communications though the core (hub) router. The star topology features the advantage of simplified and centralized management of the WAN topology.
Reference: Cisco CCDA self-study v2 (Page 195)

NEW QUESTION: 3
You have a server named Corel that has a Server Core Installation of Windows Server 2012 R2. Corel has the Hyper-V server role installed. Corel has two network adapters from different third-party hardware vendors.
You need to configure network traffic failover to prevent connectivity loss if a network adapter fails.
What should you use?
A. New-NetSwitchTeam
B. Add-NetSwitchTeamMember
C. Install-Feature
D. Netsh.exe
Answer: A
Explanation:
http://technet.microsoft.com/en-us/library/jj553814.aspx Detailed Description The New-NetSwitchTeam cmdlet creates a new switch team. A switch team must have a name for the team and must be created with one or more members, or network adapters. The network switch team is a team that is controlled by a Hyper-V extensible switch forwarding extension. No other cmdlets can be used to manage a switch team and the NetSwitchTeam cmdlets must not be used to manage standard, or non-switch, network adapter teams.