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NEW QUESTION: 1
Sharon Foster, 56, is an executive at a large Biotech firm. Foster plans to retire in five years, to travel and spend time with her grandchildren. Foster is in excellent health, although her husband died several years ago. Foster's only significant asset is her employer's 401(k) retirement plan. Her salary is more than adequate to cover her living expenses until she retires, but she does not anticipate that she will accumulate any additional savings beyond her retirement account. The balance in her account currently is $3.2 million, but Foster estimates that by the time she retires the account will have grown to $4.5 million. She expects that her pretax living expenses, including a liberal travel budget, will be $150,000 per year, beginning when she retires. She is willing to take risk to achieve her financial goals. Her retirement account is currently invested 80% in stocks and 20% in bonds. Foster estimates her post-retirement income tax rate to be 35%, which is about the same as her current tax rate.
As she is starting to plan her retirement, Foster has turned to her longtime friend, Don Welch, CFA, who is a portfolio manager at Scientific Investments, LLC. Welch is considering three different mutual funds for Foster's account. All three are well-diversified funds of large capitalization stocks. The expected returns and standard deviations of each fund are shown below in Exhibit 1. Welch assumes a risk-free rate of return of 3.0%.

Welch believes in stock market efficiency, but he also believes that individual securities are mispriced by the market from time to time. He has recently reviewed research related to the Treynor-Black (TB) model of security selection and portfolio optimization. Welch refers to a prospectus from Fund D, which uses the TB framework in developing its portfolios. In discussing their use of the TB model, the prospectus cites an example where an active portfolio of five stocks is combined with a passive, index portfolio. The portfolio weights of the stocks are in Exhibit 2.

Welch further notes that the beta of the active portfolio is 0.90, although the standard deviation of the portfolio's returns is high. Of the five stocks shown in the portfolio, three have positive alphas, and two have negative alphas. A footnote to the sample data states that the sample assumes that the analysts* alpha forecasts are perfect.
Welch is reviewing Foster's account, together with the mutual fund data, in an attempt to develop a long- term investment plan for Foster.
In evaluating the Fund D prospectus, Welch was concerned about the large weightings of the individual securities, as well as the relatively low beta of the active portfolio. Which of the following statements best describes the effects of these large asset weights and the low beta of the active portfolio?
A. The large asset weights, either positive or negative, are a result of combining long and short positions in the active portfolio, while the low beta reflects that the active portfolio is well diversified before being combined with the market portfolio.
B. The large asset weights will fall to reasonable levels as the active and passive portfolios are combined- and the low beta indicates a higher potential gain from the diversification benefits of the market portfolio.
C. The large asset weights are required to offset the low relative returns of the market portfolio, while the low beta represents the combination of long and short positions in the active portfolio.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The asset weights given are relative to the active portfolio only. Typically in a TB framework, these weights will fall dramatically as the active portfolio is combined with the market portfolio. The weights relative to the overall portfolio should be reasonable. The low beta of the active portfolio probably indicates a high level of diversifiable risk in the active portfolio, which can be diversified away with the addition of the market portfolio. (Study Session 18, LOS 67.b)

NEW QUESTION: 2
Computer-generated evidence is considered:
A. Demonstrative evidence
B. Second hand evidence
C. Direct evidence
D. Best evidence
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Computer-generated evidence normally falls under the category of hearsay evidence, or second-hand evidence, because it cannot be proven accurate and reliable. Under the U.S. Federal Rules of Evidence, hearsay evidence is generally not admissible in court. Best evidence is original or primary evidence rather than a copy or duplicate of the evidence. It does not apply to computer-generated evidence. Direct evidence is oral testimony by witness. Demonstrative evidence is used to aid the jury (models, illustrations, charts).
References: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, John Wiley & Sons, 2001, Chapter 9: Law, Investigation, and Ethics (page 310).
ROTHKE, Ben, CISSP CBK Review presentation on domain 9.

NEW QUESTION: 3
Which of the following defines a list of jobs not suitable for children between the ages of 16 and 18?
A. FECA
B. FLSA
C. OSHA
D. IRCA
Answer: B
Explanation:
Answer option D is correct.The Fair Labor Standards Act (FLSA) defines a list of jobs not suitable for children between the ages of 16 and 18.Answer option A is incorrect. OSHA stands for Occupational Safety and Health Administration. OSHA is an agency of the United States Department of Labor. It was created by Congress of the United States under the Occupational Safety and Health Act, signed by President Richard M.
Nixon, on December 29, 1970. Its mission is to prevent work-related injuries, illnesses, and occupational fatality by issuing and enforcing standards for workplace safety and health. The agency is headed by a Deputy Assistant Secretary of Labor. OSHA issues guidelines and regulations for the safe use of a computer. Answer option C is incorrect. The IRCA, or Immigration Reform and Control Act of 1986, prohibits employers from hiring undocumented workers (sometimes called illegal aliens). It is an Act of Congress which reformed United States immigration law. Answer option B is incorrect. Federal Employees Compensation Act (FECA) is a law that provides rules for compensation benefits to federal employees for work-related injuries or illnesses. FECA contains legal provision for giving compensation to their surviving dependents if a work-related injury or illness results in the employee's death. Chapter: Risk Management Objective: Risk Assessment

NEW QUESTION: 4
Which component processes the launch file and presents the ticket to NetScaler Gateway in the communication process?
A. StoreFront
B. Virtual Delivery Agent (VDA)
C. Citrix Receiver
D. Delivery Controller
Answer: C
Explanation:
https://virtualfeller.files.wordpress.com/2017/10/citrix-xenapp-and-xendesktop-7-15- poster3.png

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