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NEW QUESTION: 1
Investment managers develop portfolios of different investments to combine, offset, and thereby reduce
overall risk. Not all risks can be eliminated by development of a portfolio. Risks that cannot be eliminated
through a portfolio are called:
A. Non-market risks.
B. Systematic risks.
C. Unsystematic risks.
D. Firm-specific risks.
Rule: Portfolio theory is concerned with construction of an investment portfolio that efficiently balances its
risk with its rate of return. Risk is often reduced by diversification, the process of mixing investments of
different or offsetting risks. The broad categories of risk are summarized in the following mnemonic to get
Unsystematic (non market/firm-specific)
Choice "d" is correct. Non-diversifiable risk cannot be eliminated by the application of portfolio theory.
Non-diversifiable risk is also referred to as systematic risk. (DUNS)
Choice "a" is incorrect. Diversifiable risk can be eliminated through effective application of portfolio theory.
Diversifiable risks are also termed non-market risk.
Choice "b" is incorrect. Diversifiable risk can be eliminated through effective application of portfolio theory.
Diversifiable risks are also termed unsystematic risk.
Choice "c" is incorrect. Diversifiable risk can be eliminated through effective application of portfolio theory.
Diversifiable risks are also termed firm-specific risk.
NEW QUESTION: 2
All applications running on an EMC Symmetrix VMAX array are experiencing poor performance. The environment is characterized by:
Inefficient resource utilization
Service levels not being met
What can be done to guarantee service levels of business critical applications?
A. Implement dynamic cache partitioning
B. Balance throughput across ports
C. Re-map devices to evenly map the workload
D. Provision new storage for applications