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NEW QUESTION: 1
Pace Insurance is a large, multi-line insurance company that also owns several proprietary mutual funds.
The funds are managed individually, but Pace has an investment committee that oversees all of the funds.
This committee is responsible for evaluating the performance of the funds relative to appropriate benchmarks and relative to the stated investment objectives of each individual fund. During a recent investment committee meeting, the poor performance of Pace's equity mutual funds was discussed. In particular, the inability of the portfolio managers to outperform their benchmarks was highlighted. The net conclusion of the committee was to review the performance of the manager responsible for each fund and dismiss those managers whose performance had lagged substantially behind the appropriate benchmark.
The fund with the worst relative performance is the Pace Mid-Cap Fund, which invests in stocks with a capitalization between S40 billion and $80 billion. A review of the operations of the fund found the following:
* The turnover of the fund was almost double that of other similar style mutual funds.
* The fund's portfolio manager solicited input from her entire staff prior to making any decision to sell an existing holding.
* The beta of the Pace Mid-Cap Fund's portfolio was 60% higher than the beta of other similar style mutual funds.
* No stock is considered for purchase in the Mid-Cap Fund unless the portfolio manager has 15 years of financial information on that company, plus independent research reports from at least three different analysts.
* The portfolio manager refuses to increase her technology sector weighting because of past losses the fund incurred in the sector.
* The portfolio manager sold all the fund's energy stocks as the price per barrel of oil rose above $80. She expects oil prices to fall back to the $40 to S50 per barrel range.
A committee member made the following two comments:
Comment 1: "One reason for the poor recent performance of the Mid-Cap Mutual Fund is that the portfolio lacks recognizable companies. I believe that good companies make good investments." Comment 2: "The portfolio manager of the Mid-Cap Mutual Fund refuses to acknowledge her mistakes.
She seems to sell stocks that appreciate, but hold stocks that have declined in value." The supervisor of the Mid-Cap Mutual Fund portfolio manager made the following statements:
Statement 1: "The portfolio manager of the Mid-Cap Mutual Fund has engaged in quarter-end window dressing to make her portfolio look better to investors. The portfolio manager's action is a behavioral trait known as over-reaction." Statement 2: "Each time the portfolio manager of the Mid-Cap Mutual fund trades a stock, she executes the trade by buying or selling one-third of the position at a time, with the trades spread over three months.
The portfolio manager's action is a behavioral trait known as anchoring." The committee member's comment 2 suggests that the manager of the Pace Mid-Cap Fund suffers from:
A. hindsight bias.
B. money illusion.
C. loss aversion.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
By selling a stock that has declined in value, the manager would be accepting a loss. By hanging on to these poor performing stocks, the manager is avoiding any admission of an error on her part, and is demonstrating loss aversion. Money illusion refers to underestimating the effects of inflation by focusing on nominal returns rather than real (inflation-adjusted) returns. (Study Session 3, LOS 8.a)

NEW QUESTION: 2
Note: This question is part of series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
A company has custom ASP.NET and Java applications that run on old versions of Windows and Linux. The company plans to place applications in containers.
You need to design a solution that includes networking, service discovery, and load balancing for the applications. The solution must support storage orchestration.
Solution: You deploy each application to an Azure Web App that has container support.
Does the solution meet the goal?
A. Yes
B. No
Answer: B

NEW QUESTION: 3
AWS Direct Connect를 사용하여 Amazon Virtual Private Cloud (Amazon VPC)에 연결하기 전에 다음 중 무엇을 따라야 합니까?
A. 각 BGP (Border Gateway Protocol) 세션에 대한 공용 IP 주소를 제공하십시오.
B. 인터넷에서 네트워크를 식별하기 위해 공개 자율 시스템 번호 (ASN)를 제공하십시오.
C. 개인 IP 주소를 122.x.x.x 범위의 네트워크에 할당하십시오.
D. 가상 프라이빗 게이트웨이를 생성하여 가상 프라이빗 클라우드 (VPC)에 연결하십시오.
Answer: D
Explanation:
To connect to Amazon Virtual Private Cloud (Amazon VPC) by using AWS Direct Connect, you must first do the following:
Provide a private Autonomous System Number (ASN) to identify your network on the Internet.
Amazon then allocates a private IP address in the 169.x.x.x range to you. Create a virtual private gateway and attach it to your VPC.
http://docs.aws.amazon.com/directconnect/latest/UserGuide/Welcome.html

NEW QUESTION: 4
You are performing an onsite security inspection of division of your company. On an Apache server, you want to determine what files are needed and which can be removed from the
/etc/httpd folder. Which of the following are possibly valid Apache confguration files? Choose all that apply.
A. srm.conf
B. access.conf
C. apached.conf
D. in.http.conf
E. httpd.conf
Answer: A,B,E

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