Identify a Characteristic That Is a Disadvantage of Cloud-Based Hosting

question 24

Multiple Choice

Identify a characteristic that is a disadvantage of cloud-based hosting.

• A)loss of control over data location
• B)ongoing support costs
• C)increased management requirements
• D)significant development effort

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.

Arbitrage Pricing Model

A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.

Characteristic Line

In finance, this is a line generated in a statistical plot to describe how the returns of a security relate to the returns of the overall market, used in the Capital Asset Pricing Model (CAPM).