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NEW QUESTION: 1
Mary Carr is 62 years old, in good health, and will retire in four years from her position as the CEO and chairman of the board of a large professional services firm, Appleton Professional Services, which is located in the midwestern United States. Carr has approached Tim Houlis, her financial planner, for help in preparing an investment policy statement and accompanying asset allocation. Jack Timmons is Houlis' assistant.
In a lunch meeting with Houlis and Timmons, Carr reveals that she is thinking of moving this year to be closer to Appleton's largest client. She is concerned about developing an investment plan now given that she will no longer have contact with Houlis if she does move. Houlis reassures her that this is not a problem. He states that a properly constructed investment policy statement can be readily implemented by her new financial advisor. Timmons states that the investment policy statement is a long-term document that should be changed only if the outlook for equities versus bonds and other assets changes.
Carr's parents were successful business people who owned a series of small firms. Their success, however, did not come without challenges. Twice they had to liquidate businesses in which they were the primary shareholders. As a child, Carr became accustomed to the uncertainties of the entrepreneurial world. When she graduated from college, her parents provided her with the funds to purchase Appleton Professional Services. Appleton was a small firm at that point, but Can-has grown it into one of the larger firms in its industry, even though the professional services industry is cyclical and is susceptible to economic recessions. Appleton went public eight years ago and Carr retained a majority shareholder position when it did. Over time she has sold some of the stock but still has a controlling position in the firm.
Despite the business difficulties Carr's parents experienced, they were able to amass a sizeable fortune in their later years. Including her inheritance and holdings in Appleton stock, Carr has a portfolio with a current value of $6,000,000, most of which is invested in Appleton and other domestic and international equities. Carr has instructed Houlis and Timmons to grow her portfolio over time, focusing on capital appreciation and achieving long-term return goals. She would like to leave her children a sizeable inheritance.
Carr is single with two children. Her oldest child, Mark, is 25 years old and financially independent. Her youngest son, John, is a junior in college at a prestigious liberal arts college in New England. The tuition payment for his last year of college of approximately $40,000 is due at the end of this year. She has no mortgage on her house. Carr is an avid bird watcher and gifts $50,000 a year to a local environmental group. She is concerned with the destruction of bird habitat, so she does not want to invest in highly- polluting industries or firms that are involved in real estate development.
When she retires, Carr will receive a lump-sum, after-tax distribution of approximately $500,000 from her firm. She will also begin collecting an annual pension payment equal to her current salary. The pension payment is indexed to inflation. She will be covered under Appleton's health insurance plan in retirement.
Carr spends $ 170,000 a year on vacations and living expenses, which is about equal to her current salary at Appleton.
Houlis estimates that Carr is taxed at an effective marginal rate of 30% on capital gains and income. Houlis estimates an inflation rate of 3% for the rest of Carr's life expectancy, which he projects at 20 years or more, given her good health.
With regard to generating adequate liquidity for Carr's portfolio, Timmons states that she need not invest entirely in income-generating assets. Instead, Carr can generate income from stock dividends, bond coupons, and the sale of assets. By being willing to generate income through the sale of assets, Carr would be able to broaden the types of securities available to her for investment. Timmons states that the problem with most assets that produce income (e.g., dividend paying stocks) is that their expected return is usually lower. He states that the advantage of his approach is that Carr could pursue higher return assets, such as small company stocks.
Timmons' approach to generating liquidity can be best characterized as a:
A. tactical income approach.
B. strategic income approach.
C. total return approach.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Under a total return approach, the investor can generate income through the sale of assets, bond coupons, and stock dividends. This allows the investor to generate liquidity using non-income producing assets that may have higher returns. (Study Session 18, LOS 68.c)
NEW QUESTION: 2
A. Option C
B. Option B
C. Option A
D. Option D
Answer: B
Explanation:
Explanation
References:
https://aws.amazon.com/blogs/security/how-to-connect-your-on-premises-active-directory-to-aws-using-ad-conn
NEW QUESTION: 3
The chief Risk officer is concerned about the new employee BYOD device policy and has requested the security department implement mobile security controls to protect corporate data in the event that a device is lost or stolen.
The level of protection must not be compromised even if the communication SIM is removed from the device. Which of the following BEST meets the requirements? (Select TWO)
A. Asset tracking
B. GEO-Tracking
C. Device encryption
D. Screen-locks
Answer: A,C
Explanation:
A. Asset tracking is the process of maintaining oversight over inventory, and ensuring that a device is still in the possession of the assigned authorized user.
D. Device encryption encrypts the data on the device. This feature ensures that the data on the device cannot be accessed in a useable form should the device be stolen.
Incorrect Answers:
B. Screen-lock is a security feature that requires the user to enter a password after a short period of inactivity before they can access the system again. This feature ensures that if your device is left unattended or is lost or stolen, it will be difficult for anyone else to access your data or applications.
C. GEO tracking and GPS tracking can be used to identify its location of a stolen device and can allow authorities to recover the device. However, for GPS tracking to work, the device must have an Internet connection or a wireless phone service over which to send its location information.
References:
Dulaney, Emmett and Chuck Eastton, CompTIA Security+ Study Guide, 6th Edition, Sybex, Indianapolis, 2014, pp. 418-419
Stewart, James Michael, CompTIA Security+ Review Guide, Sybex, Indianapolis, 2014, pp. 236, 237, 238
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