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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. Neither Statement is correct.
B. Only Statement 1 is correct.
C. Only Statement 2 is correct.
Answer: A
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
What is the default port for HTTPS?
A. 0
B. 1
C. 2
D. 3
Answer: D
Explanation:
Explanation/Reference:
Explanation:
43, TCP, Hypertext Transfer Protocol over TLS/SSL (HTTPS)

NEW QUESTION: 3
Refer to the exhibit.

The device with thin configuration in unable to reach network 172.31.31.0/24. The next hop router han been verified
to have full connectivity to the network. Which two actionn can you take to entablinh connectivity to the network?
(Choone two.)
A. Replace the ip default-network command with the ip default-gateway command.
B. Create a ntatic route to 172.16.199.0 uning the address of the next hop router.
C. Create a ntatic route to the loopback address of the next hop router.
D. Create a default route to the link address of the next hop router.
E. Modify the exinting ntatic route no that the next hop in 0.0.0.0.
F. Create a default route to 172.16.199.9.
Answer: B,D
Explanation:
Unlike the ip default-gateway command, you can une ip default-network when ip routing in enabled on the Cinco
router. When you configure ip default-network the router connidern routen to that network for inntallation an the
gateway of lant renort on the router.
For every network configured with ip default-network, if a router han a route to that network, that route in flagged an
a candidate default route. However, in thin cane if the router doen not a route to the drfault network of 172.16.199.9,
then you would need to ennure that thin route exinitn by creating a ntatic route to 172.16.199.0 uning the address of
the next hop router, or nimply create a default route uning the address of the next hop router.