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NEW QUESTION: 1
Dan Draper, CFA is a portfolio manager at Madison Securities. Draper is analyzing several portfolios which have just been assigned to him. In each case, there is a clear statement of portfolio objectives and constraints, as welt as an initial strategic asset allocation. However, Draper has found that all of the portfolios have experienced changes in asset values. As a result, the current allocations have drifted away from the initial allocation. Draper is considering various rebalancing strategies that would keep the portfolios in line with their proposed asset allocation targets.
Draper spoke to Peter Sterling, a colleague at Madison, about calendar rebalancing. During their conversation, Sterling made the following comments:
Comment 1: Calendar rebalancing will be most efficient when the rebalancing frequency considers the volatility of the asset classes in the portfolio.
Comment 2: Calendar rebalancing on an annual basis will typically minimize market impact relative to more frequent rebalancing.
Draper believes that a percentage-of-portfolio rebalancing strategy will be preferable to calendar rebalancing, but he is uncertain as to how to set the corridor widths to trigger rebalancing for each asset class. As an example, Draper is evaluating the Rogers Corp. pension plan, whose portfolio is described in Figure 1.

Draper has been reviewing Madison files on four high net worth individuals, each of whom has a $1 million portfolio. He hopes to gain insight as to appropriate rebalancing strategies for these clients. His research so far shows:
Client A is 60 years old, and wants to be sure of having at least $800,000 upon his retirement. His risk tolerance drops dramatically whenever his portfolio declines in value. He agrees with the Madison stock market outlook, which is for a long-term bull market with few reversals.
Client B is 35 years old and wants to hold stocks regardless of the value of her portfolio. She also agrees with the Madison stock market outlook.
Client C is 40 years old, and her absolute risk tolerance varies proportionately with the value of her portfolio. She does not agree with the Madison stock market outlook, but expects a choppy stock market, marked by numerous reversals, over the coming months.
Based on the information provided in Figure 1, which asset class of the Rogers pension plan should have the narrowest rebalancing corridor width?
A. U.S. small cap stocks.
B. U.S. government bonds.
C. Emerging market stocks.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Factors indicating a narrower corridor width are low transaction costs> low correlation with the rest of the portfolio, and high volatility. Emerging market stocks have the lowest correlation with the rest of the portfolio, as well as the highest standard deviation. Their transaction costs are only slightly higher than
U.S. small cap stocks. The narrow corridor means that small changes in value may necessitate rebalancing. The low correlation and high volatility increase the likelihood of increasing divergence from the target asset mix. The low transaction costs reduce the cost of rebalancing back to the target mix.
(Study Session 16, LOS 46.f)

NEW QUESTION: 2
If a guest domain is not responding, and powering off the guest through the console does not work, which xm command can be used to kill the guest immediately (equivalent to pulling the power plug)?
A. xm delete
B. xm shutdown
C. xm pause
D. xm destroy
E. xm reset
Answer: B

NEW QUESTION: 3
Which of the following are included in the basic environment of a DC? (Multiple Choice)
A. Airconditioning
B. Monitoring
C. Power supply
D. Access control
Answer: A,C,D

NEW QUESTION: 4
You must report on frame types seen on the WLAN. You want to list the frame types by both name and binary value.
What frame type is represented by the binary value 011010, which includes the Type and Subtype values?
A. Authentication
B. PS-Poll
C. Association Request
D. Beacon
Answer: B
Explanation:
Explanation/Reference:
Reference: http://www.rhyshaden.com/wifi_frm.htm


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