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NEW QUESTION: 1
What fields in the ERP system are used to determine the 'intermediate' warehouse number in delivery documents.
There are 2 correct answers to this question.
Response:
A. Shipping condition
B. Company Code
C. Storage condition
D. Storage Location
E. Plant
F. MRPArea
Answer: D,E
NEW QUESTION: 2
Tamara Ogle, CFA, and Isaac Segovia, CAIA, are portfolio managers for Luca's Investment Management (Luca's). Ogle and Segovia both manage large institutional investment portfolios for Luca's and are researching portfolio optimization strategies.
Ogle and Segovia begin by researching the merits of active versus passive portfolio management. Ogle advocates a passive approach, pointing out that on a risk-adjusted basis, most managers cannot beat a passive index strategy. Segovia points out that there will always be a need for active portfolio managers because as prices deviate from fair value, active managers will bring prices back into equilibrium. They determine that Treynor-Black models permit active management within the context of normally efficient markets.
Ogle decides to implement Treynor-Black models in her practice and starts the implementation process. In conversations with her largest client's risk manager, Jim King, FRM, she is asked about separation theorem in relation to active portfolio management. She responds that separation theorem more properly relates to asset prices deviating from and gravitating toward their theoretical fair price. King next asks Ogle about the differences between the Sharpe ratio and the information ratio and the difference between the security market line (SML) and the capital market line (CML).
After reallocating her client portfolios based on using the Treynor-Black model, Ogle discusses the results with Segovia. Ogle states that she is satisfied with the current methodology, but given her preference for passive management, she is still concerned about relying on analyst's forecasts. Segovia tells Ogle that he will research methods for modifying the Treynor-Black model to account for analyst forecasts.
When using the Treynor-Black model, the actively managed portfolio's security weights computed by Ogle are calculated as the ratio of each security's:
A. alpha to its systematic risk divided by the sum of these ratios for every security in the active portfolio.
B. alpha to its nonsystematic risk divided by the sum of these ratios for every security in the active portfolio.
C. excess return to its unsystematic risk divided by the sum of these ratios for every security in the active portfolio.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
In the Treynor-Black model, rhe weightings for securities in the actively managed portfolio are computed as:
where:
n = number of assets in actively managed portfolio
If the markets were efficient, there would be no benefit from active security analysis. However, as markets become inefficient, according to the Treynor-Black model, the value of active security selection increases.
(Study Session 18, LOS 67.b)
NEW QUESTION: 3
The "separation of duties" principle is violated if which of the following individuals has update rights to the database access control list (ACL)?
A. Systems programmer
B. Data custodian
C. Security administrator
D. Data owner
Answer: A
Explanation:
Explanation/Reference:
Explanation:
A systems programmer should not have privileges to modify the access control list (ACL) because this would give the programmer unlimited control over the system. The data owner would request and approve updates to the ACL, but it is not a violation of the separation of duties principle if the data owner has update rights to the ACL. The data custodian and the security administrator could carry out the updates on the ACL since it is part of their duties as delegated to them by the data owner.
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