Classification Codes Are Used To

question 47

Multiple Choice

Classification codes are used to:

• A) group data according to a common characteristic.
• B) control the sequence of data by ensuring that a class of codes has all unique values.
• C) disguise data within a classification, that is, ensure security for classified data.
• D) encrypt data according to a security class.
• E) enable users to understand the components or classes of data within a larger code.

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Definitions:

Beta

A means to compare the stability and risk factor of a security or portfolio relative to the market as a whole.

SML (Security Market Line)

A line that represents the expected return of an investment as a function of its risk, with the risk measured by the investment's beta.

Zero-investment Portfolio

A portfolio that is constructed without requiring any initial capital, typically by taking long and short positions that offset each other.

Short and Long Positions

Short positions involve selling securities not owned with the hope of buying them back at a lower price, while long positions involve buying securities with the expectation that they will increase in value.