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NEW QUESTION: 1
Which of the following statements is least accurate with respect to the portfolio duration measure?
A. Portfolio duration is only a valid measure for portfolio interest rate risk for parallel changes in the yield curve.
B. Portfolio duration will increase as more bonds are included in the portfolio.
C. Portfolio duration changes all the time, even without changes in yields.
Answer: B
Explanation:
Portfolio duration will NOT necessarily increase as more bonds are included in the portfolio.
If the bonds being added to the portfolio had low durations, than the portfolio duration, which is just the weighted average of the individual durations, would decrease.

NEW QUESTION: 2
Due to these complexities, for practical purposes it is acceptable to use the ratio as we defined it.
However, the analyst is well advised to research:
A. Whether to adjust this ratio to include all interest-bearing debt
B. the guideline companies' use of short-term
C. Both the subject and guideline companies' use of short-term debt to determine whether to adjust this ratio to include all interest-bearing debt
D. the subject companies' use of short-term debt
Answer: C

NEW QUESTION: 3
Which of the following is the most significant reason that domestic governments and international organizations seek to eliminate cartels?
A. Small businesses cannot survive or grow without government protection.
B. True competition keeps prices as low as possible, thus increasing efficiency in the marketplace.
C. The increased sales price reduces the amount of corporate tax revenues payable to the government.
D. The economic stability of developing countries depends on a global free market.
Answer: B
Explanation:
A cartel is an organization of sellers (e.g., the oil cartel OPEC) who undertake joint action to maximize members' profits by controlling the supply, and therefore the price, of their product. Under the laws of many nations, such collusive conduct is illegal when engaged in by firms subject to those laws. The reason is that, as a result of the monopolistic and anticompetitive practices of cartels, supply is lower, prices are high, competition is restrained, and the relevant industry is less efficient. Accordingly, governmental and international organizations seek to protect consumers and the health of the domestic and global economy through anti-cartel efforts.

NEW QUESTION: 4
You have built the core of your network using Spanning Tree Protocol. You must ensure that if one of the links between your core switches fails to receive BPDUs it does not mistakenly create a loop.
Which feature would you use to ensure BPDUs are always received from neighboring switches to indicate that the remote switch is still alive?
A. root protection
B. loop protection
C. storm control
D. BPDU control
Answer: A
Explanation:
Explanation/Reference:
Peer STP applications running on switch interfaces exchange a special type of frame called a bridge protocol data unit (BPDU). Switches communicate interface information using BPDUs to create a loop-free topology that ultimately determines the root bridge and which interfaces block or forward traffic in the spanning tree.
However, a root port elected through this process has the possibility of being wrongly elected. A user bridge application running on a PC can generate BPDUs, too, and interfere with root port election.
To prevent this from happening, enable root protection on interfaces that should not receive superior BPDUs from the root bridge and should not be elected as the root port.
References: http://www.juniper.net/techpubs/en_US/junos15.1/topics/example/spanning-trees-root- protection-ex-series.html