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NEW QUESTION: 1
Which system provides evolutionary framework for incremental process improvement?
A. Kanban
B. Poke-Yoke
C. Agile
D. Service Management
Answer: A

NEW QUESTION: 2
Millennium Investments (MI), an investment advisory firm, relies on mean-variance analysis to advise its clients. Mi's advisors make asset allocation recommendations by selecting the mix of assets along the capital allocation line that is most appropriate for each client.
One of MPs clients, Edward Alverson, 60 years of age, requests an analysis of four risky mutual funds (Fund W, Fund X, Fund Y, and Fund Z). After examining the four funds, MI finds that all four mutual funds are equally weighted portfolios, and that all of the funds, except Fund Z, are mean-variance efficient. MI also finds that the correlations between all pairs of the mutual funds are less than one.
MI calculates the average variance of returns across all assets within each mutual fund, the average covariance of returns across all pairs of assets within each mutual fund, and each mutual fund's total variance of returns. The results of Mi's calculations are reported in Exhibit 1.

During his meeting with the MT advisors, Alverson explains that he will retire soon, and, consequently, is highly risk-averse. Alverson agrees with Mi's reliance on mean-variance analysis and makes the following statements:
Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
Statement 2: Because I am highly risk-averse, I expect that my investment portfolio on the capital allocation line will have risk and return equal to that of the global minimum variance portfolio.
MI operates under the assumption that all investors agree on the forecasts of asset expected returns, variances, and correlations. Based on these assumptions, MI created the Millennium Investments 5000 Fund (MI-5000), which is a market value-weighted portfolio of all assets in the market. MI derives the forecasts for the MI-5000 Fund and for a fund comprising short-term government securities shown in Exhibit 2.

Are Statements 1 and 2 made by Alverson correct?
A. Statement 2 is incorrect.
B. Both statements are incorrect.
C. Statement 1 is incorrect.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Statement 1 is not correct. A minimum variance portfolio is one that has smallest variance among all portfolios with identical expected return. The minimum-variance frontier is a graph of the expected return, variance combinations for all minimum variance portfolios. The minimum variance frontier (in risk-return space) has a bullet shape. Along the upper section of the minimum variance frontier, all portfolios have expected returns that exceed that of the global minimum variance portfolio, and returns increase as risk increases. Along the lower section, however, all portfolio returns are less than the global minimum variance portfolio return, and expected returns worsen as risk increases. Clearly, portfolios lying on the lower section of the minimum variance frontier arc not desirable.
Statement 2 also is not correct, MI uses mean-variance analysis to select an appropriate investment combination of the risk-free asset and the optimal risky portfolio lying along the capital allocation line (CAL). The CAL dominates the minimum variance frontier (the efficient frontier comprising exclusively risky assets). Therefore, the expected return along the CAL will exceed that of the global minimum variance portfolio (which is on the minimum variance frontier) for the same level of risk. Also, the risk along the CAL will be less than that of the global minimum variance portfolio for the same level of expected return. (Study Session 18, LOS 64.b,d)

NEW QUESTION: 3
Which two statements are true about the Private Cloud Deployment Model?
A. It can be hosted and operated by an organization for exclusive use by self-service users in the same organization.
B. It can be hosted and operated by an organization for exclusive use by self-service users in the same group of organizations.
C. It can be operated by a third-party company for exclusive use by self-service users in an organization, but must be hosted by the same organization to which the self-service users belong.
D. It can be hosted by a third-party company for exclusive use by self-service users in an organization, but must be operated by the same organization to which the self-service users belong.
E. It can be hosted and operated by a third-party company for private use by self-service users in an organization.
Answer: A,C
Explanation:
Section: (none)