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NEW QUESTION: 1
________ diversify outside the stock market by combining common stock with fixed-income securities, including government bonds, corporate bonds, convertible bonds, or preferred stock.
A. None of these answers
B. Fixed income funds
C. Bond funds
D. Balanced funds
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Balanced funds diversify outside the stock market by combining common stock with fixed-income securities.
NEW QUESTION: 2
Which of the following is true in relation to Principal Component Analysis (PCA)?
I. An n x n positive definite square matrix will have n-1 eigenvectors
II. The eigenvalues for a correlation matrix can be derived from the corresponding values for the covariance matrix III. Principal components are uncorrelated to each other IV. PCA is useful as it allows 100% of the variation in a complex system to be explained by the first three principal components
A. III and IV
B. III
C. I, II and IV
D. I and III
Answer: B
Explanation:
Explanation
An n x n positive definite square matrix will have n eigenvectors, and not n - 1. Therefore statement I is incorrect.
A correlation and covariance matrix are related to each other through the matrix of standard deviations. If the covariance matrix is represented by V, the correlation matrix by C and D is the diagonal matrix of standard deviations, then V = DCD. However, there is no simple relationship between the eigenvalues of the two matrices, and it is not possible to derive the eigenvalues for one given the eigenvalues for the other. Therefore statement II is false.
Principal components are uncorrelated to each other. That is correct, and in fact PCA is useful because of this being so. Statement III is therefore true.
PCA does not explain 100% of the variation in a system with just three components - statement IV is false.
(Remember though that most (though not 100%) of the variation in a system of term structures is explained by the first three components - trend, tilt and curvature).
Thus Choice 'd' is the correct answer.
NEW QUESTION: 3
When performing switch maintenance, a customer accidentally disconnects all network connections to an active VNX Data Mover. How does VNX handle this situation?
A. The active Data Mover fails over after 30 seconds of lost connectivity.
B. The VNX always notifies EMC Customer Service of the problem.
C. The active Data Mover immediately fails over.
D. The primary Data Mover remains active.
Answer: D