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NEW QUESTION: 1
An auditee has responded to all requests for corrective action in a timely manner. Which of the following is the next step for the auditor?
A. Schedule a follow-up audit to verify corrective action.
B. Evaluate the adequacy of the responses.
C. Close all those findings in which the response is accompanied by adequate objective evidence.
D. Schedule a follow-up audit for critical items and schedule verification for other routine items at the next scheduled audit.
Answer: B

NEW QUESTION: 2
Security A has a beta of 1.2 while security B has a beta of 1.5. If the risk free rate is 3%, and the expected total return from security A is 8%, what is the excess return expected from security B?
A. 6.25%
B. 7.17%
C. 4.17%
D. 9.25%
Answer: A
Explanation:
Explanation
This question requires us to use the CAPM.
Recall that according to CAPM the expected return on an asset = The risk free rate + x Market risk premium.
Using the beta and expected return of security A, we can determine the market risk premium to be (8% -
3%)/1.2 = 4.1667%. The excess return is the return over the risk free rate, and for security B, this is nothing but the beta multiplied by the market risk premium. Therefore the correct answer is 4.1667% x 1.5 = 6.25%.
Note that this is the 'excess return', and not the total return. (Total return will include the risk free rate).

NEW QUESTION: 3





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

NEW QUESTION: 4
Universal Containers initiates cases based on electronic transmissions from power units. The case management process is as follows: A work order is submitted to a field service team to perform a technical review.
After the technical review is closed, an agent needs to contact the customers to review the activities.
Cases can only be closed after the customer review has been completed.
Universal Containers needs to determine whether the work orders and customer contacts should be stored as child cases or on a related custom object.
Which three aspects should the consultant consider to meet these requirements?
Choose 3 answers
A. Account team relationship to the primary contact
B. Visibility and access to the work order records
C. Case closure rules on the original case
D. Work order and customer contact escalation requirements
E. Total number of account and contact records in the database
Answer: B,C,D