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NEW QUESTION: 1
Based on the farm and zone decision, how should redundancy of the data store be addressed?
A. The data store should be based in New York, with a replicated copy of the data store in San Francisco.
B. The data store should be based in San Francisco, with a replicated copy of the data store in New York.
C. The data store should be based on a clustered configuration in the New York datacenter.
D. The data store should be based on a clustered configuration in the San Francisco datacenter.
Answer: A

NEW QUESTION: 2
What kind of attribute is the aggregator?
A. Optional non-transitive
B. Well-known mandatory
C. Well-known discretionary
D. Optional transitive
Answer: D

NEW QUESTION: 3
Assuming that the nominal risk-free rate of interest is currently at 4.90% per year, with the real inflationfree rate of return at 2.05% per year, what is the inflation premium? Further, assuming that the inflation premium is to fall by 130 basis points, what would be the adjusted nominal risk-free rate of interest?
Assume that both the new inflation rate and the inflation-free rate of interest are considered small by historical standards.
A. The answer cannot be calculated from the information provided.
B. 2.85% per year, increase by 130 basis points
C. 2.05% per year, decrease by 130 basis points
D. 2.85% per year, increase by 70 basis points
E. None of these answers is correct.
F. 2.05% per year, increase by 130 basis points
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Remember that the nominal risk-free rate of interest is comprised of two components, the real "inflation- free" rate of interest and an inflation premium. The inflation premium is equal to the anticipated inflation rate.
The equation for the calculation of the nominal interest rate when the real inflation-free rate of interest and/ or the inflation premium are significantly small is as follows:
Risk-free rate of return = k* + IP
where: k* = the real inflation-free rate of return and IP = the inflation premium In this example, the nominal risk-free interest rate is provided as 4.90%, and the inflation-free rate of return as 2.05%. Incorporating these values into the equation illustrated above will yield a value of 2.85% for the inflation premium.
Increasing the inflation premium by 130 basis points will lead to a 130 basis point increase in the nominal risk-free interest rate. None of the answers correctly illustrate these findings.
When either the real "inflation-free" interest rate or the expected inflation rate are significantly large, the calculation of the nominal risk-free rate differs from the equation used when these factors are significantly small. Specifically, the calculation of the nominal risk-free rate of interest when the inflation-free rate of interest and/or the inflation premium are significantly high, the calculation of the nominal risk-free rate is as follows:
Nominal RFR = (1 + Real RFR)(1 + E(I)) - 1
Where: Real RFR = the real inflation-free rate of interest and E(I) = the anticipated inflation rate