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NEW QUESTION: 1
Millennium Investments (MI), an investment advisory firm, relies on mean-variance analysis to advise its clients. Mi's advisors make asset allocation recommendations by selecting the mix of assets along the capital allocation line that is most appropriate for each client.
One of MPs clients, Edward Alverson, 60 years of age, requests an analysis of four risky mutual funds (Fund W, Fund X, Fund Y, and Fund Z). After examining the four funds, MI finds that all four mutual funds are equally weighted portfolios, and that all of the funds, except Fund Z, are mean-variance efficient. MI also finds that the correlations between all pairs of the mutual funds are less than one.
MI calculates the average variance of returns across all assets within each mutual fund, the average covariance of returns across all pairs of assets within each mutual fund, and each mutual fund's total variance of returns. The results of Mi's calculations are reported in Exhibit 1.
During his meeting with the MT advisors, Alverson explains that he will retire soon, and, consequently, is highly risk-averse. Alverson agrees with Mi's reliance on mean-variance analysis and makes the following statements:
Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
Statement 2: Because I am highly risk-averse, I expect that my investment portfolio on the capital allocation line will have risk and return equal to that of the global minimum variance portfolio.
MI operates under the assumption that all investors agree on the forecasts of asset expected returns, variances, and correlations. Based on these assumptions, MI created the Millennium Investments 5000 Fund (MI-5000), which is a market value-weighted portfolio of all assets in the market. MI derives the forecasts for the MI-5000 Fund and for a fund comprising short-term government securities shown in Exhibit 2.
Alverson asks MI to examine the risk-return characteristics for an equal-weighted combination of Funds Y and Z MI should conclude that the:
A. expected return on the equal-weighted combination will be less than the arithmetic average of the Fund Y and Fund Z expected returns.
B. standard deviation on the equal-weighted combination will be less than the arithmetic average of the Fund Y and Fund Z standard deviations.
C. expected return on the equal-weighted combination will exceed the arithmetic average of the Fund Y and Fund Z expected returns.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The expected return on a portfolio of two assets equals:
this will equal the average of the two standard deviations only if the
correlation between Funds Y and Z equals +1. MI already determined that the correlation of returns between Funds Y and Z is less than +1. Therefore, the equally weighted portfolio combination of Funds Y and Z will have a standard deviation that is less than the arithmetic average of the Fund Y and Z standard deviations. (Study Session 18, LOS 64.a)
NEW QUESTION: 2
What is the result of specifying of QoS rule that has a rate limit that is greater than the maximum throughput of an interface?
A. Matching traffic is not rate limited.
B. The system repeatedly generates warnings.
C. The rate-limiting rule is disabled.
D. The system rate-limits all traffic.
Answer: A
Explanation:
Reference: https://www.cisco.com/c/en/us/td/docs/security/firepower/620/configuration/guide/fpmc-config-guide-v62/quality_of_service_qos.pdf
NEW QUESTION: 3
Which two of the following tasks would require a restart of the Alfresco server to apply the changes?
A. Making configuration changes via JMX.
B. Deploying a new workflow through the Activiti workflow console.
C. Deploying a new content model into Data Dictionary/Models.
D. Making configuration changes in alfresco-global.properties.
E. Deploying a new content model via a *-context.xml file.
Answer: D,E
NEW QUESTION: 4
Access control is the collection of mechanisms that permits managers of a system to exercise a directing or restraining influence over the behavior, use, and content of a system. It does not permit management to:
A. specify how to restrain hackers
B. specify which resources they can access
C. specify what operations they can perform on a system.
D. specify what users can do
Answer: A
Explanation:
Access control is the collection of mechanisms that permits managers of a system to exercise a directing or restraining influence over the behavior, use, and content of a system. It permits management to specify what users can do, which resources they can access, and what operations they can perform on a system. Specifying HOW to restrain hackers is not directly linked to access control. Source: DUPUIS, Clement, Access Control Systems and Methodology, Version 1, May 2002, CISSP Open Study Group Study Guide for Domain 1, Page 12