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NEW QUESTION: 1
Which of the following statements are most accurate about ad-hoc work? (Choose Two)
A. In order to convert an ad-hoc work item into a case type, it must NOT be an instance of a class group
B. Process commander allows an ad-hoc work to be the child of another ad-hoc work
C. Both operations involving the creation of ad-hoc work and the conversion of ad-hoc work into a case type require a specific privilege
D. An ad-hoc work item can only be converted into a case type as a subcase of an existing case type
E. By default, an ad-hoc work item class is the class group of the current work
Answer: B,E
NEW QUESTION: 2
A. Option E
B. Option C
C. Option B
D. Option D
E. Option A
Answer: D,E
Explanation:
A (not B,not E): The CREATE DATABASE ... ENABLE PLUGGABLE DATABASE SQL statement creates a new CDB. If you do not specify the ENABLE PLUGGABLE DATABASE clause, then the newly created database is a non-CDB and can never contain PDBs.
D: You can create a PDB by plugging in a Non-CDB as a PDB. The following graphic depicts the options for creating a PDB:
Incorrect:
Not E: For the duration of its existence, a database is either a CDB or a non-CDB. You cannot
transform a non-CDB into a CDB or vice versa. You must define a database as a CDB at creation,
and then create PDBs within this CDB.
NEW QUESTION: 3
Which of the following would NOT be acceptable under the Bank Bribery Act and the relevant guidelines?
A. A luncheon paid for by a bank customer after a transaction is closed
B. The gift of a gold watch to a loan officer from a customer who is the loan NOTES officer's cousin
C. A gift of a hunting rifle to a loan officer from a borrower at Christmas
D. An award of a writing pen and pencil set to a bank officer by a civic organization
Answer: C
NEW QUESTION: 4
Kim Simpson, CFA, manages a $75 million multi-cap growth portfolio. Simpson utilizes a growth at a reasonable price (GARP) investment strategy and her investment universe consists of small, medium and large capitalization stocks. She turns the entire portfolio over once each year. Simpson is concerned about the amount of trading costs she has generated through the implementation of her investment strategy.
Simpson decides to conduct a trade cost analysis with the cooperation of her trader, Janet Long, CFA.
Simpson believes the results of the trading analysis can be used to improve trading performance and help to refine her investment strategy. The first trade they examine is a purchase of 2000 shares of Technology Company that was completed using a market order. Simpson remembers adding to her Technology Company position based on her analyst's recommendation that the company was going to generate earnings significantly above the consensus estimate in a soon to be released earnings report. The order was split into two trades as shown in Figure 1.
Figure 1: Technology Company buy order for 2000 shares
In conducting a comprehensive analysis of the trading markets, Simpson states that she is most concerned about market liquidity. Simpson defines a market with good liquidity as one with diversity of opinion, many buyers/sellers and relatively wide bid-ask spreads. In addition to reviewing market liquidity, Simpson believes that, in order to assess market quality, both the ease with which investors can obtain accurate information and the certainty that a trade will be completed must be evaluated.
Simpson and Long review their trade of Nano Corporation, a small biotechnology company. Simpson used a limit order because her analyst had established a specific buy target and she wanted to hold down transaction costs. To handle both explicit and implicit trading costs, Simpson measures execution costs using implementation shortfall. The buy order for 100,000 shares of Nano stock has the following timeline:
* Nano stock price closes at $35.00 per share.
* Day one: Simpson places a limit order for 100,000 shares of Nano stock at $34.75 per share or better at the opening of trading. However, Nano's stock never falls below $35.00 per share and closes at $36.50 per share.
* Day two: Simpson adjusts her limit order price to $37.00 per share or better. Long is able to fill 50,000 shares of the order at $36.75 per share. Nano's stock climbs to $38.00 per share during the day and Simpson moves the limit price to $40.00 per share or better. Long completes the purchase of the remaining 50,000 shares of Nano at $40.00 per share, which is also the closing price of Nano's stock.
* The commission for each block trade is $2,500.
Long suggests implementing the Best Execution concept as established by the CFA Institute in its Trade Management Guidelines. Long states best execution would accept a high portfolio turnover strategy provided the overall portfolio value is greater after trading costs. Long asserts that her professional relationships are integral to best execution.
The explicit cost component of the total implementation shortfall for the Nano Corporation trade is closest to:
A. 0.35%.
B. 0.25%.
C. 0.15%.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Implementation shortfall can be decomposed into explicit costs, realized profit/loss, delay costs, and missed trade opportunity cost (MTOC).
Paper portfolio investment = (35x100,000) = 3,500,000
Total implementation shortfall = 0.00143 + 0.05357 + 0.04286 + 0 = 0.09786 (Study Session 16, LOS 45-f)
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