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NEW QUESTION: 1
Given the following information:
Yield on 10-year government bond in Argentina: 9.5%.
*
Yield on 10-year US Treasury bond: 5.5%.
*
The annualized o of Argentina national stock index: 40%.
*
The annualized o of US bond index: 10%.
*
The equity risk premium for a project in the US: 10%.
*
The equity risk premium for a similar project in Argentina is:
A. 26%.
B. 16%.
C. Not enough information.
Answer: C
Explanation:
To calculate the equity risk premium we need to know the annualized o of Argentina bond index.

NEW QUESTION: 2
Which of the following correctly describes survivorship bias:
A. Survivorship bias is the tendency for failed companies, markets or investments to be excluded from performance data.
B. Survivorship bias is the negative skew in returns data resulting from credits that have survived despite a high probability of default
C. Survivorship bias is the positive tail risk that ensures survival over the long run
D. Survivorship bias refers to prudent and conservative risk management
Answer: A
Explanation:
Explanation
Survivorship bias is the tendency for failed companies, funds, investments and even entire markets (eg Russian stock market returns after the Communist revolution) to be excluded from performance studies because they no longer exist. Survivorship bias results in past results looking better than they actually were as data points relating to failures are not included.
A risk manager needs to be aware of survivorship bias when basing risk analysis on historical data and should question if failures (eg failed funds, delisted companies etc) have been included in the data he or she is relying upon.

NEW QUESTION: 3
Refer to the exhibit.

What happens when the router stops receiving advertisements for the 10.1.2.0/24 network?
A. 10.1.2.0/24 will still be advertised but packets destined for it will be dropped when they reach this router.
B. The summary route will be removed from the table.
C. The more specific routes will be advertised from the table.
D. The summary route will remain in the table.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
If you look very closely at the routing table output, we can conclude that R1 has "auto- summary" enabled under the EIGRP routing process.
D 10.0.0.0/8 is a summary, 00:23:20, Null 0
Anytime the "auto-summary" is enabled under the routing process the router will install a summary route to
"null 0" as long as the router has one or more subnets within the "classful" network. In the case above, you have two directly connected interfaces (Serial1 & Serial2) that are within the "classful" network. Therefore, regardless of whether you leran a route via EIGRP that is in the "classful" network, R1 will still install this summary route to "null 0".