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NEW QUESTION: 1
A. Option A
B. Option C
C. Option B
D. Option D
Answer: C
NEW QUESTION: 2
What is the main business responsibility of the Care Program Manager?
A. Supervises revenues and costs and analyses profitability.
B. Supervises revenues and costs and approves customer discounts.
C. Supervises revenues and costs and provides reports to the Account Manager.
D. Supervises sales and costs and defines discounts.
Answer: A
NEW QUESTION: 3
Wealth Management's top economist, Frederick Milton, is an economic cycle forecaster- Milton's economic forecasts indicate an economic upswing that will impact all goods and services sectors. Milton presents his economic findings to the rest of Wealth Management's professionals at their monthly meeting. All are excited about Milton's forecast of an improving economic condition that should translate into a steadily rising stock market.
Nathaniel Norton and Timothy Tucker have confidence in Milton's capabilities and decide to meet with their clients. Their first meeting is with Elizabeth Mascarella to whom Norton recommends a dynamic asset allocation strategy to take advantage of Milton's forecast. However, Mascarella is concerned because the somewhat persistent back-and-forth of economic activity has translated into an oscillating stock market.
Mascarella questions Norton's recommendation and asks Tucker which strategy should be followed if the market continues as it has, instead of making such "wonderful" strides.
It is one year later and Frederick Milton's economic forecast has been correct, and the market has trended upward as expected. Mascarella's strategic allocation to equity, which was $600,000 of a total portfolio of
$1,000,000, has increased 20%. Her overall portfolio, which contains equity, debt, and some cash, is now valued at $1,150,000. Tucker meets with Mascarella and indicates it may be time to rebalance her portfolio.
Determine the preferred dynamic rebalancing strategy if the market is expected to be highly volatile, but more or less flat.
A. Buy and hold.
B. Constant proportion portfolio insurance.
C. Constant mix.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In a market expected to oscillate, constant mix strategies (fixed percentage allocation to stocks) outperform the others, since they involve buying/selling stocks when prices fall/ rise. (Study Session 16, LOS 46.h)
NEW QUESTION: 4
Which of the following would BEST mitigate identified vulnerabilities in a timely manner?
A. Categorization of the vulnerabilities based on system's criticality
B. Action plan with responsibilities and deadlines
C. Continuous vulnerability monitoring tool
D. Monitoring of key risk indicators (KRls)
Answer: B
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