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NEW QUESTION: 1
Which attributes do invoicing plans have? (Choose two.)
A. The start date of an invoicing plan can be defined at item level.
B. Invoices for invoicing plans can be generated automatically.
C. The invoicing plan type for a purchase order item can be changed retroactively.
D. Invoicing plans can be used for stock materials as well as for consumable materials.
Answer: A,B

NEW QUESTION: 2
Christopher Robinson, chairman of the board of directors for a private endowment fund, believes that the endowment fund for which he is responsible has diverged too far from its stated objectives. Over several years the board has increased the size of the fund's equity position beyond the stated limits of the investment policy statement. In an effort to realign the fund's investments, Robinson has elected to choose a mortgage-backed security (MBS) for inclusion in the endowment's portfolio. After surveying the MBS market, Robinson has selected four MBS securities to present as potential investments at the next investment committee meeting. Details on the selected MBS securities are presented below:

At the investment committee meeting, a fellow board member raises his concerns over the potential MBS investments stating, "While we all agree that the fixed-income proportion of the endowment is much too small, I am not sure the suggested MBS securities will fulfill the cash flow requirements of the endowment.
What risks are we taking on by allocating a portion of the portfolio to these investments? We cannot afford to end up with a timing mismatch between the cash needs of the endowment and the cash provided from its investments. Also, we have given no consideration to commercial mortgage backed securities (CMBS).
Isn't our analysis incomplete if we fail to give proper discussion of potential CMBS investment opportunities?" Robinson responded to his fellow board member by addressing the board member's concerns as follows:
"Since the cash requirements of the endowment fund fluctuate directly with interest rates, the cash flows provided from the MBS will provide adequate protection against cash shortfalls arising from differences in the timing of cash needs and cash sources. In addition, we can further reduce uncertainty surrounding the timing of cash flows by purchasing planned amortization class CMOs, which are securities issued against pools of MBS. CMBS were not presented due to the unacceptable risk profile of the comparable CMBS trading in the marketplace." Robinson commented that the MBS cash flows would match the cash needs of the endowment, and also that planned amortization class CMOs also help mitigate cash flow timing risk. Are Robinson's comments correct?
A. Only the comment about planned amortization class CMOs and cash flow timing risk is correct.
B. Only the comment about the MBS matching the cash flow needs of the endowment is correct.
C. Both comments are correct.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Robinsons statement regarding the cash flows of the MBS is incorrect. Cash flows from an MBS will, in general, vary inversely with interest rates. As interest rates fall, prepayments will increase, causing cash flows to be realised earlier than expected. The opposite is true in a rising interest rate environment when refinancing becomes less attractive and prepayments decrease, delaying expected cash flows. If the endowment fund has cash flow needs that vary directly with interest rates, it will need a source of funds that varies in the same way. Robinson is correct about the planned amortiyaiion claw CMOs. The structure gives these securities a relatively predictable life. (Study Session 15, LOS 55.f,h)

NEW QUESTION: 3
What is a virtual system?
A. a method of providing a secure connection across a network
B. a tool to protect against DoS attacks
C. a collection of subnets and interfaces sharing identical security requirements
D. a mechanism to logically partition a single ScreenOS device into multiple logical devices
Answer: D