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NEW QUESTION: 1
Jack Mercer and June Seagram are investment advisors for Northern Advisors. Mercer graduated from a prestigious university in London eight years ago, whereas Seagram is newly graduated from a mid-western university in the United States. Northern provides investment advice for pension funds, foundations, endowments, and trusts. As part of their services, they evaluate the performance of outside portfolio managers. They are currently scrutinizing the performance of several portfolio managers who work for the Thompson University endowment.
Over the most recent month, the record of the largest manager. Bison Management, is as follows. On March 1, the endowment account with Bison stood at $ 11,200,000. On March 16, the university contributed $4,000,000 that they received from a wealthy alumnus. After receiving that contribution, the account was valued at $ 17,800,000. On March 31, the account was valued at $16,100,000. Using this information, Mercer and Seagram calculated the time-weighted and money-weighted returns for Bison during March. Mercer states that the advantage of the time-weighted return is that it is easy to calculate and administer. Seagram states that the money-weighted return is, however, a better measure of the manager's performance.
Mercer and Seagram are also evaluating the performance of Lunar Management. Risk and return data for the most recent fiscal year are shown below for both Bison and Lunar. The minimum acceptable return (MAR) for Thompson is the 4.5% spending rate on the endowment, which the endowment has determined using a geometric spending rule. The T-bill return over the same fiscal year was 3.5%. The return on the MSCI World Index was used as the market index. The World index had a return of 9% in dollar terms with a standard deviation of 23% and a beta of 1.0.
The next day at lunch, Mercer and Seagram discuss alternatives for benchmarks in assessing the performance of managers. The alternatives discussed that day are manager universes, broad market indices, style indices, factor models, and custom benchmarks. Mercer states that manager universes have the advantage of being measurable but they are subject to survivor bias. Seagram states that manager universes possess only one quality of a valid benchmark.
Mercer and Seagram also provide investment advice for a hedge fund, Jaguar Investors. Jaguar specializes in exploiting mispricing in equities and over-the-counter derivatives in emerging markets. They periodically engage in providing foreign currency hedges to small firms in emerging markets when deemed profitable. This most commonly occurs when no other provider of these contracts is available to these firms. Jaguar is selling a large position in Mexican pesos in the spot market. Furthermore, they have just provided a forward contract to a firm in Russia that allows that firm to sell Swiss francs for Russian rubles in 90 days. Jaguar has also entered into a currency swap that allows a firm to receive Japanese yen in exchange for paying the Russian ruble.
Regarding their statements about manager universes, determine whether Mercer and Seagram are correct or incorrect.
A. Only Mercer is correct.
B. Only Seagram is correct.
C. Both are correct.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Mercer is correct because, although manager universes are measurable (after the fact), they are subject to survivor bias. Survivor bias refers to the tendency to include only those managers currently in existence in the benchmark, thereby ignoring those who have left the business or stopped reporting. The poorer performers' records are left out, creating an upward bias in the benchmark performance.
Seagram is correct because manager universes possess only one quality of a valid benchmark, which is measurability. A valid benchmark should meet the following criteria: (1) specified in advance, (2) appropriate, (3) measurable, (4) unambiguous, (5) reflect current investment opinions, (6) accountable, (7) invcstablc. The median manager cannot be identified in advance and is therefore also ambiguous. The benchmark will differ from one period to another and is therefore not investable. It is impossible to determine its appropriateness and whether it is reflective of current opinion due to its ambiguity. It is also difficult to determine its accountability because fund sponsors must rely on the compiler's representations.
(Study Session 17, LOS 47.e, f, h)
NEW QUESTION: 2
You have a deployment of System Center 2012 R2 Virtual Machine Manager (VMM). The deployment contains three Hyper-V hosts named Server1, Server2, and Server3. All of the servers connect to a LUN named LUN1.
You need to disconnect Server1 from LUN1 without affecting the other Hyper-V hosts.
You write the following Windows PowerShell script:
Which command should you insert at line 03?
A. Remove-SCSTORAGE1ogicalUnit -STORAGE1ogicalUnit $VAR1 -VMHost$VAR2
B. Unregister-SCSTORAGElogicalUnit -STORAGE1ogicalUnit $VAR2 -VMHost $VAR1
C. Unregister-StorageSubSystem -ProviderName $VAR2, $VAR1
D. Set-SCSTORAGE1ogicalUnit -STORAGE1ogicalUnit $VAR2 -VMHost SVAR1
Answer: B
NEW QUESTION: 3
For manageability purposes, you have been told to add a "count" instance variable to a critical JSP Document so that a JMX MBean can track how frequent this JSP is being invoked. Which JSP code snippet must you use to declare this instance variable in the JSP
Document?
A. <jsp:declaration>
int count = 0;
< jsp:declaration>
B. <jsp:declaration.instance>
int count = 0;
< jsp:declaration.instance>
C. <%! int count = 0; %>
D. <jsp:scriptlet.declaration>
int count = 0;
< jsp:scriptlet.declaration>
Answer: A
NEW QUESTION: 4
Drag and Drop Question
You are implementing an order processing system. A point of sale application publishes orders to topics in an Azure Service Bus queue. The label property for the topic includes the following data:
The system has the following requirements for subscriptions:
You need to implement filtering and maximize throughput while evaluating filters.
Which filter types should you implement? To answer, drag the appropriate filter types to the correct subscriptions. Each filter type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
Explanation:
FutureOrders: SQLFilter
HighPriortyOrders: CorrelationFilter
CorrelationID only
InternationalOrders: SQLFilter
Country NOT USA requires an SQL Filter
HighQuantityOrders: SQLFilter
Need to use relational operators so an SQL Filter is needed.
AllOrders: No Filter
SQL Filter: SQL Filters - A SqlFilter holds a SQL-like conditional expression that is evaluated in the broker against the arriving messages' user-defined properties and system properties. All system properties must be prefixed with sys. in the conditional expression. The SQL-language subset for filter conditions tests for the existence of properties (EXISTS), as well as for null-values (IS NULL), logical NOT/AND/OR, relational operators, simple numeric arithmetic, and simple text pattern matching with LIKE.
Correlation Filters - A CorrelationFilter holds a set of conditions that are matched against one or more of an arriving message's user and system properties. A common use is to match against the CorrelationId property, but the application can also choose to match against ContentType, Label, MessageId, ReplyTo, ReplyToSessionId, SessionId, To, and any user-defined properties.
A match exists when an arriving message's value for a property is equal to the value specified in the correlation filter. For string expressions, the comparison is case-sensitive. When specifying multiple match properties, the filter combines them as a logical AND condition, meaning for the filter to match, all conditions must match.
Boolean filters - The TrueFilter and FalseFilter either cause all arriving messages (true) or none of the arriving messages (false) to be selected for the subscription.
References:
https://docs.microsoft.com/en-us/azure/service-bus-messaging/topic-filters