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NEW QUESTION: 1
Which of the following statements is true:
I. The standard deviation of a short position is the same as the standard deviation of a long position II. The expected return of a short position is the same as that a long position in the same asset III. If two assets are perfectly positively correlated, then a short position in one and a long position in the other are negatively correlated IV. If we increase the weight of an asset in a portfolio, its correlation with other assets in the portfolio scales up proportionately
A. I, II, III and IV
B. II and IV
C. II, III and IV
D. I and III
Answer: D
Explanation:
Explanation
Statement I is true as standard deviation is the root of the squared deviations, and is always positive, and identical regardless of the positions being long or short.Statement II is false as the expected return of a long position is exactly the negative of the expected return of the short position.Statement III is correct as a correlation of +1 between two long positions implies a correlation of -1 between one long and one short position. This is the basis of hedging, for example, of spot positions with futures.Statement IV is inaccurate.
The weight of an asset in a portfolio does not change the correlation of the asset with the portfolio, or with other assets.Therefore Choice 'c' is the correct answer.
NEW QUESTION: 2
An approver wants to forward a single document that they are approving to an alternate approver. How can they do this?
Please choose the correct answer.
A. Replace their name in the approval flow using the Forward Approvable feature.
B. Ask an administrator to add the alternate approver to the approval flow.
C. Set the alternate approver as their delegate using the Delegate Authority feature.
D. Add the alternate approver to the approval flow and approve the document.
Answer: D
NEW QUESTION: 3
Which of the following types of payment transactions requires the authorization of both the initiating and the receiving party?
A. A drawdown wire
B. A non-repetitive wire
C. A depository transfer check
D. A multiple drawee check
Answer: A
NEW QUESTION: 4
In the process of applying and executing the backup service, what module is responsible for interworking with the backup server in OpenStack Cinder?
A. Cinder Driver
B. Cinder API
C. Backup Driver
D. BCManager Backup Proxy
Answer: C
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