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NEW QUESTION: 1
Jim, an investment manager with Smith, Kleen & Associates, is in the process of determining the annualized return for a client portfolio. Jim uses a specific three-step process to determine this annualized return, which is detailed as follows:
Step 1:
Jim prices the portfolio immediately prior to any significant addition or withdrawal of funds. The portfolio is broken into specific subperiods based on the dates of cash inflows and outflows. The product of the subperiods is 10 years.
Step 2:
Jim calculates the holding period return of the portfolio for each subperiod.
Step 3:
Jim calculates the geometric mean of the annual returns. This calculation is used as the annual portfolio return measure.
Which of the following best describes the final calculation produced by Jim?
A. Asset-weighted rate of return
B. Dollar-weighted rate of return
C. Time-weighted rate of return
D. Geometrical rate of return
E. Annualized holding period return
F. Modified Internal Rate of Return
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The process illustrated in this example is the calculation of the time-weighted rate of return. This method of calculating portfolio returns is superior in many respects to the dollar-weighted rate of return, which is also known as the IRR. The reason for this relative superiority is the fact that the time-weighted rate of return is not sensitive to portfolio additions or withdrawals. So said, the time-weighted rate of return is more popular in the field of investment management.
While "annualized holding period return" is a tempting choice, it does not represent the best possible answer. "Geometrical rate of return" could refer to several return measures, but not the time-weighted rate of return.

NEW QUESTION: 2
Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
In 1994, Joan received $3,500 as beneficiary of the death benefit, which was provided by her brother's
employer. Joan's brother did not have a nonforfeitable right to receive the money while living.
A. $900
B. $500
C. $0
D. $2,000
E. $1,000
F. $1,500
G. $2,500
H. $1,250
I. $1,300
J. $3,000
K. $10,000
L. $75,000
M. $50,000
N. $25,000
O. $55,000
Answer: C
Explanation:
Explanation
"A" is correct. $0. Life insurance proceeds received by reason of the death of the insured are not taxable
income to the recipient.

NEW QUESTION: 3
You execute the following commands to audit database activities:

Which statement is true about the audit record that generated when auditing after instance restarts?
A. One audit record is created for the whole session if john successfully executes a SELECT, INSERT, or DELETEcommand on a table, and contains the execution plan, SQL text, and bind variables used.
B. One audit record is created for every successful execution of a SELECT, INSERTor DELETEcommand, and contains the execution plan for the SQL statements.
C. One audit record is created for the whole session if JOHN successfully executes a select command, and contains the SQL text and bind variables used.
D. One audit record is created for the whole session if JOHN successfully executes a SELECT, INSERT, or DELETEcommand, and contains the execution plan for the SQL statements.
E. One audit record is created for every successful execution of a SELECT, INSERTor DELETEcommand on a table, and contains the SQL text for the SQL Statements.
Answer: E