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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." A committee member suggested that the portfolio manager of the Mid-Cap Fund may be overconfident about her abilities. Which of the following facts from the review of the Mid-Cap fund is least likely to suggest that the manager is overconfident?
A. The reliance of the manager on staff input before selling an existing holding.
B. Consideration only of stocks with 15 years of financial data and three independent research reports.
C. The high turnover of the Mid-Cap Fund relative to similar style mutual funds.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Common characteristics of overconfidence are frequent trading (high turnover), high risk levels (high beta), and the illusion of knowledge (extensive data and research reports, which do not necessarily indicate superior performance going forward). Relying on staff input may or may not be good portfolio management but ir is not a sign of overconfidence. (Study Session 3, LOS 12.a)

NEW QUESTION: 2
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You have a Power Pivot model that contains the following tables.

There is a relationship between Products and ProductCategory.
You need to create a hierarchy in Products that contains ProductCategoryName and ProductName.
Solution: You create a measure that uses the ISCROSSFILTERED DAX function Does this meet the goal?
A. No
B. Yes
Answer: A

NEW QUESTION: 3
A Product Owner wants advice from the Scrum Master about estimating work in Scrum. Which of these is the guideline that a Scrum Master should give? (Choose the best answer.)
A. Estimates are made by the Product Owner, but are best checked with the Development Team.
B. Product Backlog items must be estimated in story points.
C. Scrum forbids estimating.
D. Estimates must be in relative units.
E. Estimates are made by the people doing the work.
Answer: E

NEW QUESTION: 4
An exposed area of the substrate or previous coat of a conductive coating material, often caused by poor application technique is called
A. cracking.
B. holiday.
C. checking.
D. sagging.
Answer: B