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NEW QUESTION: 1
Amie Lear, CFA, is a quantitative analyst employed by a brokerage firm. She has been assigned by her supervisor to cover a number of different equity and debt investments. One of the investments is Taylor, Inc. (Taylor), a manufacturer of a wide range of children's toys. Based on her extensive analysis, she determines that her expected return on the stock, given Taylor's risks, is 10%. In applying the capital asset pricing model (CAPM), the result is a 12% rate of return.
For her analysis of the returns of Devon, Inc. (Devon), a manufacturer of high-end sports apparel, Lear intends to use the Fama-French model (FFM). Devon is a small-cap growth stock that has traded at a low market-to-book value in recent years. Lear's analysis has provided a wealth of quantitative information to consider. The return on a value-weighted market index minus the risk-free rate is 5.5%, the small-cap return premium is 3.1%, the value return premium is 2.2%, and the liquidity premium is 3.3%. The risk-free rate is 3.4%. The market, size, relative value, and liquidity betas for Devon are 0.7, -0.3, 1.4, and 1.2, respectively. In estimating the appropriate equity risk premium, Lear has chosen to use the Gordon growth model.
Lear's assistant, Doug Saunders, presents her with a report on macroeconomic multifactor models that includes the following two statements:
Statement 1: Business cycle risk represents the unexpected change in the difference between the return of risky corporate bonds and government bonds.
Statement 2: Confidence risk represents the unexpected change in the level of real business activity.
Lear is also attempting to determine the most appropriate method for determining the required return for Densmore, Inc. (Densmore), a closely held company that is considering a debt issue within the next year.
The company has not previously issued debt securities to the public, relying instead on bank financing.
She realizes that there are a number of models to consider, including the CAPM, multifactor models, and build-up models.
Which of the following approaches/methods is most appropriate for Lear to consider in determining the required return for Densmore?
A. Bond-yield plus risk premium method.
B. Build-up method.
C. Risk premium approach.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The build-up method is usually applied to closely held companies (such as Densmore) where betas are not readily obtainable.
The risk premium approach requires betas for its calculations; betas are generally not readily available for closely held companies.The bond-yield plus risk premium method is appropriate only if the company has publicly traded debt. The method simply adds a risk premium to the yield to maturity of the company's long- term debt. (Study Session 10, LOS 35-d)

NEW QUESTION: 2
Which of the following is true of both SWF and SVG file formats?
A. Both describe two-dimensional vector graphics.
B. Both are W3C Recommendations.
C. Both are open industry standards.
D. Both can be streamed.
Answer: A

NEW QUESTION: 3
When using the SAP S/4HANA migration cockpit, where can you find details regarding the structure of the
fields in your migration objects, such as type and length?
A. In the system help for the cloud system
B. In the downloaded migration template
C. In the online help for the migration tool
D. In the individual object documentation
Answer: B

NEW QUESTION: 4
Ihre Domain enthält den Namen Computer mit dem Namen Computer1, auf dem Windows 10 ausgeführt wird. Computer1 verfügt nicht über ein TPM.
Sie müssen in der Lage sein, das C-Laufwerk mit Bitlocker Drive Encryption (BitLocker) zu verschlüsseln. Die Lösung muss sicherstellen, dass der Wiederherstellungsschlüssel in Active Directory gespeichert ist.
Welche zwei Gruppenrichtlinieneinstellungen sollten Sie konfigurieren? Um zu antworten, wählen Sie die entsprechenden Einstellungen im Antwortbereich.
HINWEIS: Jede richtige Auswahl ist einen Punkt wert.

Answer:
Explanation:

Explanation

References:
https://docs.microsoft.com/en-us/windows/security/information-protection/bitlocker/bitlocker-group-policy-settin