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NEW QUESTION: 1
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:

Edson's supervisor, Rosemary Valry, asks Edson to interpret the intercept of the multifactor equation for Portfolio A (0.175). Edson should respond that the intercept equals:
A. the expected return for Portfolio A, assuming the macroeconomic variables (investor sentiment and business cycle) equal zero.
B. the expected return for Portfolio A, assuming no surprises in the macroeconomic variables.
C. the expected abnormal return for Portfolio A.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The intercept in a macroeconomic factor model equals the expected return for the portfolio examined in the model (assuming no surprises in the macroeconomic variables). The factors in the multifactor equations, F}S and FBC, are factor "surprises," which by definition are expected to equal zero (i.e., by definition, zero
"surprise" is "expected"). So, by assumption, FIS and fBC are expected to equal zero. Therefore, the expected return for Portfolio A equals its intercept (17.5%). (Study Session 18, LOS 64.j)

NEW QUESTION: 2
Which three statements about VRF-Aware Cisco Firewall are true? (Choose three.)
A. It supports both global and per-VRF commands and DoS parameters.
B. It can support VPN networks with overlapping address ranges without NAT.
C. It can generate syslog messages that are visible only to individual VPNs.
D. It can run as more than one instance.
E. It enables service providers to implement firewalls on PE devices.
F. It enables service providers to deploy firewalls on customer devices.
Answer: C,D,E
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 3
An engineer is designing a multitenant network that requires separate management access and must
share a single physical firewall.
Which two features support this design? (Choose two.)
A. dynamic routing protocols
B. quality of service
C. threat detection
D. unified communications
E. site-to-site VPN
F. multicast routing
Answer: A,E