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NEW QUESTION: 1
The analyst will begin which process of revaluing each of the asset accounts and, if necessary, each of the liability accounts?
A. Accounting process
B. Business process
C. Qualitative process
D. Quantitative process
Answer: D

NEW QUESTION: 2
Powerful Performance Presenters (PPP) is a performance attribution and evaluation firm for pension consulting firms and has recently been hired by Stober and Robertson to conduct a performance attribution analysis for TopTech. Tom Harrison and Wendy Powell are the principals for PPP. Although performance attribution has come under fire lately because of its shortcomings, Stober believes PPP provides a needed service to its clients. Robertson shares Stober's view of performance attribution analysis.
Stober and Robertson request that Harrison and Powell provide a discussion of performance measures.
During a conversation on complements to attribution analysis, Harrison notes the uses of the Treynor ratio.
He states that the Treynor ratio is appropriate only when the investor's portfolio is well diversified. Powell states that the Sharpe ratio and the Treynor ratio will typically yield the same performance rankings for a set of portfolios.
Stober requests that PPP do some performance attribution calculations on TopTech's managers. In order to facilitate the analysis, Stober provides the information in the following table:

Harrison states one of PPP's services is that it will determine if TopTech has chosen a valid benchmark.
Stoher volunteers that indeed his firm's benchmark possesses the properties of a valid benchmark and describes its composition. The benchmark has the following characteristics:
* It uses the top 10% of U.S. portfolio managers each year in each asset class as the benchmark for TopTech managers;
* TopTech is very careful to make sure that its managers are familiar with the securities in each benchmark asset class;
* The identities and weights of various securities in the TopTech benchmark are clearly defined.
During a presentation to Stober, Robertson, and other TopTech executives, Harrison and Powell describe how macro attribution analysis can decompose an entire fund's excess returns into various levels. In his introduction, Robertson delineates the six levels as net contributions, risk-free return, asset categories, benchmarks, investment managers, and allocations effects.
Robertson states that TopTech has performed impressively at the investment managers level tor three years in a row. Harrison and Powell then describe the levels in greater detail. Harrison describes the benchmark level as the difference between active managers' returns and their benchmark returns. Powell states that the investment managers' level reflects the returns to active management on the part of the fund's managers, weighted by the amount actually allocated to each manager.
At the request of Stober, Harrison and Powell explore alternatives to the benchmark TopTech is currently using for its small-cap value manager. After some investigation of the small-cap value manager's emphasis, Harrison and Powell derive four potential custom benchmarks and calculate two measures to evaluate the benchmarks: (1) the return to the manager's active management or A = portfolio return - benchmark return; and (2) the return to the manager's style or S = benchmark return - broad market return.
The following characteristics are presented below for each benchmark: (1) the beta between the benchmark and the small-cap value portfolio; (2) the tracking error (i.e., the standard deviation of A); (3) the turnover of the benchmark; and (4) the correlation between A and S.

Harrison and Powell evaluate the benchmarks based on the four measures.
Of the three benchmarks, determine which would be most appropriate for the small cap value manager.
A. Benchmark C.
B. Benchmark A.
C. Benchmark B.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Benchmark B is the best benchmark for the small-cap value manager. A good benchmark will have a beta relative to the portfolio that is close to one, so the tracking error (i.e., the standard deviation of the excess return of the portfolio relative to the benchmark) will be low. The benchmark turnover should be low so that it is investable by a passive manager. The correlation between the return to the managers active management (A) and the return to the managers style (S) should be low. Otherwise, the benchmark has not adequately captured the managers style.
Benchmark B is the best benchmark using all four measures. (Study Session 17, LOS 47.i) Sample Scoring Key: 3 points for each correct response.

NEW QUESTION: 3
A development team must provide layer 2 network isolation between virtual machines that are in the same VLAN. The solutions architect must provide additional security between the virtual machines on the same subnet.
How can this be done without consuming more VLANs?
A. Use Private VLANs.
B. Use Virtual Guest Tagging.
C. Use External Switch Tagging.
D. Use Virtual Switch Tagging
Answer: A

NEW QUESTION: 4

A. Option D
B. Option A
C. Option C
D. Option B
Answer: C

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