Which of the Following Describes the New Emphasis on Experience-Level

question 52

Multiple Choice

Which of the following describes the new emphasis on experience-level agreements (XLAs) ?

• A) They are only required to provide traditional metrics in their reporting rquirements
• B) They focus on business metrics and results given the dramatic changes in the IT services industry.
• C) They are contracts used only in farshoring options.
• D) Such contracts are tightened by not including clauses related to actions in the event of noncompliance
• E) All of the above.

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Definitions:

Single-Factor Market Model

A financial model that explains a security's returns as the outcome of a single market-wide factor and the security's sensitivity to that factor.

Unsystematic Risk

The risk associated with a specific company or industry that can be mitigated through diversification.

Residuals

Residuals are differences between observed and predicted values in statistical models, used to assess the fit of models to data.

Market Portfolio

A theoretical portfolio consisting of all assets available in the market, weighted by their market capitalization.