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NEW QUESTION: 1
Karissa Grossklaus recently joined an investment banking firm as a research analyst. One of the partners asks her to determine whether a certain stock, Park Street Holdings, is overvalued or undervalued, and by how much (expressed as percentage return). Grossklaus runs a regression and finds the following information on the stock:
Grossklaus reports that Park Street Holdings stock is:
A. overvalued by 3.7%.
B. overvalued by 1.1%.
C. undervalued by 1.1%.
D. undervalued by 3.7%.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
To determine whether a stock is overvalued or undervalued, we need to compare the expected return (or holding period return) and the required return (from Capital Asset Pricing Model, or CAPM).
Step 1: Calculate Expected Return (Holding period return):
The formula for the (one-year) holding period return is:
HPR = (D1+ S1- S0) / S0, where D = dividend and S = stock price.
Here, HPR = (0 + 55 - 45) / 45 = 22.2%
Step 2: Calculate Required Return:
The formula for the required return is from the CAPM:
RR = Rf+ (ERM- Rf) * Beta
Here, we are given the information we need except for Beta. Remember that Beta can be calculated with:
Betastock= [covS,M] / [2M]. Here we are given the standard deviation of the market, so the calculation is:
1.30 / 0.752= 2.31.
RR = 4.25% + (12.5 - 4.25%) * 2.31 = 23.3%.
Step 3: Determine over/under valuation:
The required return is greater than the expected return, so the security is overvalued. The amount = 23.3%
- 22.2% = 1.1%.

NEW QUESTION: 2
Which statement regarding TFTP is not true?
A. The TFTP protocol is implemented by a wide variety of operating systems and network devices.
B. Data is transferred using fixed-size blocks.
C. Communication is initiated over UDP port 69.
D. TFTP is often utilized by operating system boot loader procedures.
E. TFTP authentication information is sent in clear text.
F. Files are transferred using a secondary data channel.
Answer: E

NEW QUESTION: 3
Note: This question is part of a series of questions that use the same scenario. For your convenience, the scenario is repeated in each question. Each question presents a different goal and answer choices, but the text of the scenario is exactly the same in each question in this series.
Start of repeated scenario.
You have a Microsoft SQL Server database that has the tables shown in the Database Diagram exhibit. (Click the Exhibit button.)

You plan to develop a Power BI model as shown in the Power BI Model exhibit. (Click the Exhibit button.)

You plan to use Power BI to import data from 2013 to 2015.
Product Subcategory[Subcategory] contains NULL values.
End of Repeated Scenario.
You need to create a measure of Sales[SalesAmount] where Product[Color] is Red or Product[Size] is 50.
Which DAX formula should you use?


A. Option C
B. Option B
C. Option A
D. Option D
Answer: A

NEW QUESTION: 4
Scenario:

A. Option A
B. Option B
C. Option C
D. Option D
Answer: B