GAQM CISSM-001 Q&A - in .pdf

  • CISSM-001 pdf
  • Exam Code: CISSM-001
  • Exam Name: Certified Information Systems Security Manager (CISSM)
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  • Q & A: 85 Questions and Answers
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  • Exam Code: CISSM-001
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  • Exam Code: CISSM-001
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Policy-based routing allows network administrators to implement routing policies to allow or deny paths based on all of these factors except which one?
A. Application
B. Protocol
C. Throughput
D. End system
Answer: C
Policy-based routing (PBR) provides a mechanism for expressing and implementing forwarding/routing of data packets based on the policies defined by the network administrators. It provides a more flexible mechanism for routing packets through routers, complementing the existing mechanism provided by routing protocols.
Policy-based routing allows network administrators to determine and implement routing policies to allow or deny paths based on the following:
Identity of a particular end system
Size of packets

Dewpoint Systems is a renowned firm, with a total asset turnover of 1.3. A conservative firm, it has a low debt-to-equity ratio of 0.2. It manages to keep 15% of its sales as net profit and pays out 63% of the earnings as dividends. It has a beta of 0.79, at a time when the market risk premium is 6.3%. Assuming a risk-free investment rate of 6.4%, Dewpoint's price-to-earnings multiple equals ________.
A. 11.59
B. 18.22
C. 23.16
D. 13.62
Answer: C
The Dividend Discount Model implies that the firm's price-to-earnings ratio is given by Po/E1 = (D1/E1)/(k- g) = (dividend payout ratio)/(k-g), using standard notation.
The dividend growth rate is given by g = ROE*(1-dividend payout ratio).
ROE = net income/common equity = (net income/sales)*(sales/assets)*(assets/equity) = profit margin * asset turnover*(1 + debt / equity) = 0.15 * 1.3*(1+0.2) = 23.4%.
Therefore, g = 23.4%*(1-63%) = 8.66%.
The CAPM expected rate of return on the stock is equal to the risk-free rate plus beta times the market premium. So the expected return on the stock is 6.4% + 0.79 * 6.3% = 11.38%. Therefore, the price-to- earnings ratio equals 0.63/(11.38 - 8.66)% = 23.16.

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