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  • Exam Number/Code 2016-FRR
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  • 326 Q&As
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NEW QUESTION: 1
You need to meet the technical requirements for the creation of the sensitivity labels. Which administrative users are currently missing the Sensitivity label administrator role?
A. Admin1 only
B. Admm1, Admin2, Admin4, and Admin5 only
C. Admin 1 and Admin4 only
D. Admin 1 and Admin5 only
E. Admin 1. Admin2, and Admin3 only
Answer: E

NEW QUESTION: 2
What is the result when client exclusion is enabled with a timeout value of zero?
A. Clients must be explicitly included by specifying the MAC address.
B. Clients are never excluded.
C. Exclusion and inclusion is determined by access list.
D. Clients are excluded indefinitely.
E. Client exclusion is disabled.
Answer: D

NEW QUESTION: 3
Sun State Mining Inc., an all-equity firm, is considering the formation of a new division, which will increase the assets of the firm by 50 percent. Sun State currently has a required rate of return of 18 percent, U.S.
Treasury bonds yield 7 percent, and the market risk premium is 5 percent. If Sun State wants to reduce its required rate of return to 16 percent, what is the maximum beta coefficient the new division could have?
A. 2.2
B. 1.0
C. 1.6
D. 2.0
E. 1.8
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Old assets = 1.0.New assets = 0.5.Total assets = 1.5.
Old required rate:New required rate:
18% = 7% + (5%)b16% = 7% + (5%)b
beta = 2.2.beta = 1.8.
New b must not be greater than 1.8, therefore
0.3333(b) = 0.3333
b = 1.0.
Therefore, beta of the new division cannot exceed 1.0.

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