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NEW QUESTION: 1
Pace Insurance is a large, multi-line insurance company that also owns several proprietary mutual funds.
The funds are managed individually, but Pace has an investment committee that oversees all of the funds.
This committee is responsible for evaluating the performance of the funds relative to appropriate benchmarks and relative to the stated investment objectives of each individual fund. During a recent investment committee meeting, the poor performance of Pace's equity mutual funds was discussed. In particular, the inability of the portfolio managers to outperform their benchmarks was highlighted. The net conclusion of the committee was to review the performance of the manager responsible for each fund and dismiss those managers whose performance had lagged substantially behind the appropriate benchmark.
The fund with the worst relative performance is the Pace Mid-Cap Fund, which invests in stocks with a capitalization between S40 billion and $80 billion. A review of the operations of the fund found the following:
* The turnover of the fund was almost double that of other similar style mutual funds.
* The fund's portfolio manager solicited input from her entire staff prior to making any decision to sell an existing holding.
* The beta of the Pace Mid-Cap Fund's portfolio was 60% higher than the beta of other similar style mutual funds.
* No stock is considered for purchase in the Mid-Cap Fund unless the portfolio manager has 15 years of financial information on that company, plus independent research reports from at least three different analysts.
* The portfolio manager refuses to increase her technology sector weighting because of past losses the fund incurred in the sector.
* The portfolio manager sold all the fund's energy stocks as the price per barrel of oil rose above $80. She expects oil prices to fall back to the $40 to S50 per barrel range.
A committee member made the following two comments:
Comment 1: "One reason for the poor recent performance of the Mid-Cap Mutual Fund is that the portfolio lacks recognizable companies. I believe that good companies make good investments." Comment 2: "The portfolio manager of the Mid-Cap Mutual Fund refuses to acknowledge her mistakes.
She seems to sell stocks that appreciate, but hold stocks that have declined in value." The supervisor of the Mid-Cap Mutual Fund portfolio manager made the following statements:
Statement 1: "The portfolio manager of the Mid-Cap Mutual Fund has engaged in quarter-end window dressing to make her portfolio look better to investors. The portfolio manager's action is a behavioral trait known as over-reaction." Statement 2: "Each time the portfolio manager of the Mid-Cap Mutual fund trades a stock, she executes the trade by buying or selling one-third of the position at a time, with the trades spread over three months.
The portfolio manager's action is a behavioral trait known as anchoring." Indicate whether Statement 1 and Statement 2 made by the supervisor are correct.
A. Only Statement 2 is correct.
B. Neither Statement is correct.
C. Only Statement 1 is correct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Statement 1 is incorrect. The behavioral trait is regret minimization, not overreaction. The concept of regret minimization leads to herding behavior. Window dressing is a herding mentality in which portfolio managers show investors that they only invest in stocks that outperform (winners) and avoid poor performing stocks (losers). The overreaction concept asserts that random events can greatly influence an investor's decision making.
Statement 2 is incorrect. The trading described is similar to dollar cost averaging, which is a framing dependence issue that mitigates loss aversion. Anchoring leads to an under-reaction to new information, which does not apply to the portfolio manager's trading strategy. (Study Session 3, LOS 8.a, b)

NEW QUESTION: 2
A technician enters the diag system normal command for a Cisco TelePresence System
endpoint. Which action must be done in the CLI before entering this command?
A. Calling services must be stopped.
B. The Telephone_Srvr service must be restarted.
C. All forced upgrades must be cleared.
D. Logging must be enabled.
Answer: A

NEW QUESTION: 3

A. Option B
B. Option D
C. Option A
D. Option C
Answer: D
Explanation:
http://hd.kvsconsulting.us/netappdoc/801docs/html/ontap/smg/GUID-866DD79D-D2A6-4FBA-
B0BDA63560FECEFF.html
In OnTap 8.0, when UNIX security style is selected, only UNIX security objects can be used. The
correctanswer is GID, UID and UNIX permissions.
Basic UNIX permissions are organized into three classes: user, group, and others.
UNIX operating systems identify users with a numerical value: a user identifier, also known as a
UID or UserID. Each user is a member of a group of the same name as the user. Like UIDs,
groups (GIDs) are alsospecified using a numerical value.

NEW QUESTION: 4
When connecting two Fibre Channel switches using different domain IDs, which of the following would be used?
A. Trunking only
B. ISL
C. DSL
D. Port channel
Answer: B