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NEW QUESTION: 1
Travis Smith, CFA, is chief economic strategist and market analyst for Nashville Capital Management. He is developing a forecast of the S&P 500 stock market index utilizing different approaches.
Using microeconomic analysis, Smith wants to value the S&P using a dividend discount model (DDM) valuation approach. The trailing recent 52-week dividend for the S&P 500 equaled $60. Used as a proxy for the nominal risk-free rate, Treasury rates are as follows:
* 3-month T-bill rate: 3.5%
* 30-year T-bond rate: 5.0%
Smith uses an equity market premium equal to 6%. His estimate for the long-term outlook for ROE is 11%, and the long-run earnings retention rate is estimated at 40%.
Smith also is forecasting the market trends using varied macroeconomic techniques. He believes that security prices reflect expectations about the general economy. During his monitoring and forecasting of the overall economy, Smith is evaluating cyclical indicators and the business cycle. Smith has focused his analysis on three indicators:
1. Index of industrial production.
2. Interest rate spread between 10-year T-bonds and the fed funds rate.
3. Stock prices.
Smith is particularly interested in using stock market trends to predict economic turning points.
In conducting his research, Smith has found that the business cycle appears to be in the slowdown phase.
In his capital markets forecasting activities, Smith looks at government policy, and attempts to predict business and consumer activity, along with foreign trade. Smith has determined that government policy has a significant influence on the business cycle, and he is trying to predict changes in government policy.
Smith predicts that the government fiscal policy will loosen and that the Federal Reserve monetary policy will tighten. Smith estimates the following variables:
* Short-term neutral interest rate: 3.5%
* Nominal GDP long-term growth rate trend: 4.25%
* Federal Reserve inflation target: 2.25%
Smith forecasts that inflation will increase to 3.0%, and nominal GDP will grow at a 1.5% rate.
Smith's supervisor, Rasheed Gupta, requests a valuation of the S&P500 using a free cash flow to equity (FCFE) model. Gupta makes the following statement:
"A valuation model that replaces dividends with free cash flow to equity is a good alternative to the DDM If
1 remember correctly, free cash flow to equity equals net income plus depreciation." In order to assess the Fed's position and forecast changes in short-term interest rates, using the Taylor Rule, what is the optimal short-term interest rate, based on Smith's assumed values for interest rates, inflation, and growth?
A. 2.5%.
B. 1.5%.
C. 3.5%.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Using the Taylor Rule to forecast optima] short-term rates:
(Study Session 6, LOS 23-h)
NEW QUESTION: 2
What is the Web Dynpro programming model is based on?
A. Model View Controller (MVC)
B. Classic Dynpro programming
C. Internet Transaction Server (ITS)
D. Business Server Pages (BSPs)
Answer: A
NEW QUESTION: 3
Which two are features of IPv6? (Choose two.)
A. podcast
B. multicast
C. anycast
D. allcast
E. broadcast
Answer: B,C
Explanation:
IPv6 addresses are classified by the primary addressing and routing methodologies common in networkinG. unicast addressing, anycast addressing, and multicast addressing. - A unicast address identifies a single network interface. The Internet Protocol delivers packets sent to a unicast address to that specific interface. - An anycast address is assigned to a group of interfaces, usually belonging to different nodes. A packet sent to an anycast address is delivered to just one of the
member interfaces, typically the nearest host, according to the routing protocol's definition of distance. Anycast addresses cannot be identified easily, they have the same format as unicast addresses, and differ only by their presence in the network at multiple points. Almost any unicast address can be employed as an anycast address.
- A multicast address is also used by multiple hosts, which acquire the multicast address destination by participating in the multicast distribution protocol among the network routers. A packet that is sent to a multicast address is delivered to all interfaces that have joined the corresponding multicast group.
NEW QUESTION: 4
You have the following HTML Markup.
You need to ensure that the markup conforms to W3C accessibility standards.
What should you add to the markup?
A. an alt attribute to the img element
B. a headerelement within the figure element
C. a figcaptionelement within the figure element
D. a nameattribute to the img element
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Images should include alternative text (alt text) in the markup.
References:
https://www.w3.org/standards/webdesign/accessibility
https://www.w3.org/TR/UNDERSTANDING-WCAG20/text-equiv.html
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