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Exam Code: C_S4FTR_2020

Exam Name: SAP Certified Application Associate - Treasury with SAP S/4HANA (SAP S/4HANA 2020)

Version: V14.35

Q & A: 185 Questions and Answers

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NEW QUESTION: 1
For a pair of correlated assets, the achievable portfolio standard deviation will be the lowest when the correlation is:
A. = 1
B. = 0
C. = 0.33
D. = -0.33
Answer: D
Explanation:
Explanation
The lowest achievable standard deviation will be lowest when the assets are perfectly negatively correlated, ie when correlation = -1. In the case of the above choices, the lowest correlation is -0.33, which is the correct choice.

NEW QUESTION: 2
The chief executive officer has requested that the chief audit executive (CAE) coordinate the establishment of an enterprise risk management (ERM) program for the organization. Which of the following would be the most appropriate action for the CAE?
A. Decline the request as this role compromises the CAE's objectivity.
B. Accept the request after consulting with the board and adhering to proper safeguards.
C. Decline the request as internal audit has limited knowledge and experience of risk at the enterprise level to undertake the assignment.
D. Accept the request as the role of coordinating ERM is a core function of internal audit.
Answer: B

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